Answers about Flood Insurance

Does the Flood Disaster Protection Act (FDPA or Act) apply to loans that are being restructured or modified?

It depends.

By definition, a designated loan is a loan secured by a building or mobile home that is located in a Special Flood Hazard Area (SFHA) in which flood insurance is available under the Act.  If the loan being restructured or modified meets the definition of a designated loan, the Act would apply to that loan.  Additional flood insurance may be required if the lender increases the amount of the loan.

February 2011