[rcooper]

A question we received from one of our members:

I was wondering on the Settlement Coast Booklet where our training said:

The following would be added:

The following to RESPA Settlement Cost Booklet:

(14) Although you may not be required to maintain flood insurance on all structures, you may still wish to do so, and your mortgage lender may still require you to do so to protect the collateral securing the mortgage. If you choose to not maintain flood insurance on a structure, and it floods, you are responsible for all flood losses relating to that structure.

I can’t see where that language has been added to the Settlement Booklet online.

[rcooper]

This change to the settlement cost booklet isn’t expected until sometime in 2015. If you are utilizing the detached structure exemption, you might want to consider including this language on a separate disclosure until the change is made to the SCB in an effort to keep your customers informed.

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