Does the National Flood Insurance Act (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 or to be 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.

September 2019