Answers about Flood Insurance
Several family members purchased improved property and the bank determined that it was located in a Special Flood Hazard Area (SFHA). The bank 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 bank need only provide the notice to any one of the borrowers in the transaction. Banks may provide multiple notices if they choose.
The bank and borrower(s) typically designate the borrower to whom the notice will be provided. The notice must be provided to a borrower when the bank determines that the property securing the loan is or will be located in an SFHA.