Under the Flood Disaster Protection Act, when is a lender required to notify a borrower about mandatory flood insurance?
Correct Answer
C) At the time of loan application or within a reasonable time before completion of the transaction
The Flood Disaster Protection Act requires lenders to provide notice to borrowers about mandatory flood insurance requirements at the time of loan application or within a reasonable time before completion of the transaction, ensuring borrowers have adequate time to obtain coverage.
Why This Is the Correct Answer
The Flood Disaster Protection Act requires lenders to provide notice to borrowers about mandatory flood insurance requirements at the time of loan application or within a reasonable time before completion of the transaction, ensuring borrowers have adequate time to obtain coverage.
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