Which of the following properties would NOT be subject to mandatory flood insurance requirements under the Flood Disaster Protection Act?
Correct Answer
D) A manufactured home in a low-risk flood zone with a conventional loan
Mandatory flood insurance is only required for properties located in Special Flood Hazard Areas (high-risk flood zones) that have federally regulated or federally insured loans. Properties in low-risk flood zones are not subject to mandatory flood insurance requirements.
Why This Is the Correct Answer
Mandatory flood insurance is only required for properties located in Special Flood Hazard Areas (high-risk flood zones) that have federally regulated or federally insured loans. Properties in low-risk flood zones are not subject to mandatory flood insurance requirements.
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A first-lien mortgage loan is considered a Higher-Priced Mortgage Loan (HPML) under TILA when the APR exceeds the Average Prime Offer Rate (APOR) by what threshold?
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