12 CFR 339.7 - Forced placement of flood insurance.

§ 339.7 Forced placement of flood insurance.
If a bank, or a servicer acting on behalf of the bank, determines, at any time during the term of a designated loan, that the building or mobile home and any personal property securing the designated loan is not covered by flood insurance or is covered by flood insurance in an amount less than the amount required under § 339.3, then the bank or its servicer shall notify the borrower that the borrower should obtain flood insurance, at the borrower's expense, in an amount at least equal to the amount required under § 339.3, for the remaining term of the loan. If the borrower fails to obtain flood insurance within 45 days after notification, then the bank or its servicer shall purchase insurance on the borrower's behalf. The bank or its servicer may charge the borrower for the cost of premiums and fees incurred in purchasing the insurance.
Effective Date Note:
At 79 FR 75744, Dec. 19, 2014, part 339 was revised, effective Jan. 20, 2015. For the convenience of the user, the revised text is set forth as follows:
PART 339—LOANS IN AREAS HAVING SPECIAL FLOOD HAZARDS (Eff. 1-20-15)
§ 339.7 Forced placement of flood insurance.
If an FDIC-supervised institution, or a servicer acting on behalf of the FDIC-supervised institution, determines, at any time during the term of a designated loan, that the building or mobile home and any personal property securing the designated loan is not covered by flood insurance or is covered by flood insurance in an amount less than the amount required under § 339.3, then the FDIC-supervised institution or its servicer shall notify the borrower that the borrower should obtain flood insurance, at the borrower's expense, in an amount at least equal to the amount required under § 339.3, for the remaining term of the loan. If the borrower fails to obtain flood insurance within 45 days after notification, then the FDIC-supervised institution or its servicer shall purchase insurance on the borrower's behalf. The FDIC-supervised institution or its servicer may charge the borrower for the cost of premiums and fees incurred in purchasing the insurance.
Pt. 339, Nt.

Title 12 published on 2015-01-01.

No entries appear in the Federal Register after this date, for 12 CFR Part 339.

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