Answers about Flood Insurance

Why is the bank requiring escrow of the flood insurance premiums and fees in connection with my home loan?

A national bank or Federal savings association (collectively, bank), or a servicer acting on the bank’s behalf, is required to escrow all premiums and fees for any flood insurance required in connection with a loan secured by residential improved real estate or a mobile home, on which flood insurance is required under the National Flood Insurance Act, that is made, increased, extended or renewed on or after January 1, 2016, unless the bank or the type of loan qualifies for an exception to the escrow requirement.

 

September 2017