A lender originates a loan secured by property in an SFHA but the borrower obtains flood insurance through a private carrier instead of the NFIP. What additional documentation must the lender obtain?
Correct Answer
D) No additional documentation is required
The Flood Disaster Protection Act accepts flood insurance from private insurers as long as it meets the minimum coverage requirements. Lenders do not need additional documentation beyond standard policy verification when private flood insurance is used.
Why This Is the Correct Answer
The Flood Disaster Protection Act accepts flood insurance from private insurers as long as it meets the minimum coverage requirements. Lenders do not need additional documentation beyond standard policy verification when private flood insurance is used.
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A borrower disputes information on their credit report directly with the credit reporting agency. The CRA investigates and determines the information is accurate. The borrower then contacts the mortgage lender who pulled the report and demands they investigate the same dispute. The lender must:
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