HUD Notice for Lenders on FEMA Flood Insurance:
The following notice was recently issued by HUD discussing FEMA's flood insurance program.
Notice for Lenders on FEMA Flood Insurance: The Federal Emergency Management Administration’s (FEMA) authority to issue flood insurance policies under the National Flood Insurance Program (NFIP) expired at midnight March 28, 2010. FEMA has issued guidance for this lapse on authority, which can be found at http://www.fema.gov/business/nfip/ FHA will continue to insure single family mortgages on homes where flood insurance is normally required but was not secured during this lapse in flood insurance coverage authority. However, FHA-approved lenders should have an appropriate flood insurance policy application on file and collect and remit premiums pursuant to FEMA’s guidance when an insured mortgage is being closed. Lenders and mortgage servicers are reminded that, if at any time during the life of the FHA-insured mortgage, it is determined that the property is in a special flood hazard area flood insurance must be obtained when available under the NFIP. As a reminder, mortgagees are responsible for flood damage in the event that a mortgage insurance claim is filed to FHA.
Lenders are urged to periodically check FEMA’s web site (link above) for information regarding Congress’ reauthorization of the flood insurance program.
Safeguard Properties is the largest privately held field services company in the country. Located in Cleveland, Ohio and founded in 1990 by Robert Klein, Safeguard has grown from a regional preservation company with a few employees and a handful of contractors performing services in the Midwest, to a national company with over 700 employees. Safeguard is supported by a nationwide network of subcontractors able to perform any requested superintendence, preservation, and maintenance functions, as well as numerous ancillary services in the U.S., the Virgin Islands, and Puerto Rico.