Loan Setup: Flood Hazard Notice
A Flood Hazard Notice is a document that is required by law to be given to borrowers who are taking out a mortgage on a property located in a flood hazard area. The notice informs the borrower of the risks of flooding and the importance of purchasing flood insurance.
Context: Identifying the document.
Document title: Notice of Special Flood Hazards and Availability of Federal Disaster Relief Assistance
Notes on the flood hazard notice:
The Flood Hazard Notice must be given to the borrower before the loan is closed. The borrower must sign and date the notice to acknowledge that they have received it.