The Department of Housing and Urban Development is changing their policy and will require that mortgagees obtain a flood zone determination on all properties, instead of strongly encouraging such action.
In addition, Mortgagee Letter 2010-43 makes the Federal Housing Administration consistent with the Coastal Barrier Resources Act (CBRA) by prohibiting mortgage insurance for properties located within designated coastal barriers.
“The changes to existing policy that are a part of this mortgagee letter provide new guidance and clarification of existing guidance,” said David Stevens, Assistant Secretary for FHA in the mortgagee letter.
The new requirements are effective for all case numbers assigned on or after March 1, 2011.
To view a copy of the ML 2010-43, see here.