[Code of Federal Regulations]

[Title 24, Volume 2]

[Revised as of April 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR203.16a]



[Page 152]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

 CHAPTER II--OFFICE OF ASSISTANT SECRETARY FOR HOUSING--FEDERAL HOUSING 

        COMMISSIONER, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 203_SINGLE FAMILY MORTGAGE INSURANCE--Table of Contents

 

     Subpart A_Eligibility Requirements and Underwriting Procedures

 

Sec.  203.16a  Mortgagor and mortgagee requirement for maintaining flood 

insurance coverage.



    (a) If the mortgage is to cover property improvements (dwelling and 

related structures/equipment essential to the value of the property and 

subject to flood damage) that:

    (1) Are located in an area designated by the Federal Emergency 

Management Agency (FEMA) as a floodplain area having special flood 

hazards, or

    (2) Are otherwise determined by the Commissioner to be subject to a 

flood hazard, and if flood insurance under the National Flood Insurance 

Program (NFIP) is available with respect to these property improvements, 

the mortgagor and mortgagee shall be obligated, by a special condition 

to be included in the mortgage commitment, to obtain and to maintain 

NFIP flood insurance coverage on the property improvements during such 

time as the mortgage is insured.

    (b) No mortgage may be insured that covers property improvements 

located in an area that has been identified by FEMA as an area having 

special flood hazards, unless the community in which the area is 

situated is participating in the National Flood Insurance Program and 

such insurance is obtained by the mortgagor. Such requirement for flood 

insurance shall be effective one year after the date of notification by 

FEMA to the chief executive officer of a flood prone community that such 

community has been identified as having special flood hazards.

    (c) The flood insurance must be maintained during such time as the 

mortgage is insured in an amount at least equal to either the 

outstanding balance of the mortgage, less estimated land costs, or the 

maximum amount of the NFIP insurance available with respect to the 

property improvements, whichever is less.



[64 FR 56111, Oct. 15, 1999]



                           Eligible Mortgages