A team member asks about Flood Disaster Protection Act in a consumer complaint triage while trying to choose the most defensible file action. Which response should the MLO use?
Correct Answer
D) Use the flood determination before making the loan
Flood insurance is required for designated loans secured by buildings in special flood hazard areas. The best answer is "Use the flood determination before making the loan".
Why This Is the Correct Answer
Flood insurance is required for designated loans secured by buildings in special flood hazard areas. The best answer is "Use the flood determination before making the loan".
More Federal Laws Questions
A mortgage team asks a branch supervisor about TILA APR and finance-charge rules during a renewal checklist. Which answer should guide the file?
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A record-retention audit raises a question about RESPA and Regulation X. Which action should the audit analyst recommend?
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A mortgage file is paused during a risk-control review because of Flood Disaster Protection Act. Which answer should apply the requirement without relying on borrower preference?