Description
45min | Credits: 0.50 CRCM
This course provides an overview of federal laws that mandate flood insurance requirements for federally-backed mortgages, and mortgages and loans obtained through federally insured financial institutions. It explains when and how lenders must ensure mortgage borrowers have flood insurance.
Audience: Frontline employees involved in the lending process, including mortgage, consumer and small business lenders, loan processors and loan servicing.
Objectives:
- Explain the reasons for federally subsidized flood insurance
- Summarize what areas and structures are eligible for federal flood insurance coverage
- Outline lender responsibilities when making, increasing, renewing, or extending a loan secured by a building located in an area designated as a high-risk flood area
- Understand when flood insurance is mandatory and when lenders must provide a flood insurance notice to borrowers
- Determine the minimum amount of flood insurance coverage required
- Summarize borrowers’ flood insurance options
- Outline escrow requirements for loans that require flood insurance
- Explain the procedures involved in force placement of flood insurance
This course is part of the ABA Frontline Compliance program.