In response to the new flood insurance disclosure language required by different investors, LPS National Flood has created a custom Notice to Borrower (NTB) with added language for flood insurance and servicing transfer disclosures. This custom Notice of Special Flood Hazard (NSFH) contains the new investor requirement of the full Flood Insurance Coverage Subject to Change Disclosure as shown in the following paragraph:
LPS National Flood has added this language for flood insurance and servicing transfer disclosure requirements to the existing NTB/NSFH, and offers it as a custom alternative that is available upon request.
The Flood Disaster Protection Act (FDPA) requires federally regulated lenders to ensure that adequate flood insurance coverage is in place for any property used as collateral for a loan that has a building (dwelling, structure, or improvements) located or to be located in a Special Flood Hazard Area (SFHA). This additional language on the NTB is to ensure borrowers are appropriately informed of the right of future mortgage servicers to adjust flood coverage.
To request the custom NTB/NSFH including the Flood Insurance Coverage Subject to Change Disclosure, please contact:
LPS National Flood
Phone: (800) 833-6347 Lisa Koenig, ext. 633 Lisa George, ext. 132 Diane Puckett, ext. 204