Several family members purchased improved property and the lender determined that the property was located in a Special Flood Hazard Area (SFHA). The lender sent notice to only one of us before we consummated the loan. Should all of the borrowers have been notified?

No. In a transaction involving multiple borrowers, the lender need only provide the notice to any one of the borrowers in the transaction. Lenders may provide multiple notices if they choose.

The lender and borrower(s) typically designate the borrower to whom the notice will be provided. The notice  must be provided to a borrower when the lender determines that the property securing the loan is or will be located in an SFHA.

September 2019