A lender discovers that a property securing a federally backed loan is located in a newly designated Special Flood Hazard Area. How long does the borrower have to obtain flood insurance?
Correct Answer
B) 45 days from the effective date of the new flood map
When a property becomes subject to mandatory flood insurance due to map revisions, borrowers have 45 days from the effective date of the new flood map to obtain the required coverage under the Flood Disaster Protection Act.
Why This Is the Correct Answer
When a property becomes subject to mandatory flood insurance due to map revisions, borrowers have 45 days from the effective date of the new flood map to obtain the required coverage under the Flood Disaster Protection Act.
More Federal Laws Questions
A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
A loan's APR increases from 4.25% on the Loan Estimate to 4.35% on the Closing Disclosure due to a rate lock expiration. What action is required?
A lender originates a mortgage that meets all QM requirements. Three years later, the borrower defaults and claims the lender violated the ATR rule. What legal protection does the lender have?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
People Also Study
General Mortgage Knowledge
23% of exam
Mortgage Loan Origination Activities
25% of exam
Ethics, Fraud & Consumer Protection
17% of exam
Uniform State Test Content
12% of exam
Previous Question
What constitutes 'nonpublic personal information' under the Gramm-Leach-Bliley Act?
Next Question
A mortgage broker has an affiliated relationship with an appraisal management company where the broker's spouse owns a 20% interest. The broker refers all loans to this AMC but charges borrowers the same appraisal fee regardless of which appraiser is used. This arrangement: