Reply To: Remapping and Non-Participating Community


If the property securing the loan is in an SFHA but the community in which the collateral is located does not participate in the National Flood Insurance Program then flood insurance isn’t required, but you still need to send the Notice of Special Flood Hazards and document receipt – many banks send this via certified mail and retain the signed receipt. Also, for flood positive loans in a non-participating area your bank may, as a matter of policy, require flood insurance if it is available through a private company – that is a safety and soundness decision.