Regulators Propose Tweaks to Flood Rules
Posted by
Rick Coyne
Rick Coyne
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Regulators released a joint rule today that would require lenders to escrow flood insurance payments and eliminate mandatory insurance requirements for structures that are detached from a primary residence.
The rule would require lenders to escrow premiums and fees for flood insurance for loans secured by residential improved real estate or mobile homes that are made, increased, extended or renewed after Jan. 1, 2016, unless the lender or the loan qualifies for a statutory exception. The proposal would also require lenders to offer borrowers of outstanding residential loans the option to escrow flood insurance premiums and fees
