source:
  type: regulation
  id: flood-42usc-4012a
  authority: 42 U.S.C. §4012a — Flood insurance purchase and compliance requirements and escrow accounts
  description: '42 U.S.C. §4012a imposes the federal mandatory-purchase requirement for

    flood insurance on loans secured by improved real estate or mobile homes

    in Special Flood Hazard Areas (SFHAs).

    '
obligations:
- id: flood-42usc-4012a-a
  canonical_id: flood-42usc-4012a-a
  section: 42 U.S.C. §4012a(a)
  description: '(a): (a) Amount and term of coverage After the expiration of sixty days following December
    31, 1973 , no Federal officer or agency shall approve any financial assistance for acquisition or
    construction purposes for use in any area that has been identified by the Administrator as an area
    having special fl…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 42 U.S.C. §4012a(b)(1)
    source_class: flood-statute
    source_url: https://www.law.cornell.edu/uscode/text/42/4012a
    snapshot_id: 2944c4da3beedbac
    fetched_at: '2026-05-22T18:52:10Z'
    content_hash: sha256:114022863187954daaffff5b56d376ea0708930fcf9dc30b6838889948d1dc76
    paragraph_quote: '(a) Amount and term of coverage After the expiration of sixty days following December
      31, 1973 , no Federal officer or agency shall approve any financial assistance for acquisition or
      construction purposes for use in any area that has been identified by the Administrator as an area
      having special flood hazards and in which the sale of flood insurance has been made available under
      the National Flood Insurance Act of 1968 [ 42 U.S.C. 4001 et seq.], unless the building or mobile
      home and any personal property to which such financial assistance relates is covered by flood insurance
      in an amount at least equal to its development or project cost (less estimated land cost) or to
      the maximum limit of coverage made available with respect to the particular type of property under
      the National Flood Insurance Act of 1968 , whichever is less: Provided, That if the financial assistance
      provided is in the form of a loan or an insurance or guaranty of a loan, the amount of flood insurance
      required need not exceed the outstanding principal balance of the loan and need not be required
      beyond the term of the loan. The requirement of maintaining flood insurance shall apply during the
      life of the property, regardless of transfer of ownership of such property.'
    drafter_attestation: Verbatim subsection of 42 U.S.C. §4012a from Cornell LII snapshot 2944c4da3beedbac;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: flood-42usc-4012a-b
  canonical_id: flood-42usc-4012a-b
  section: 42 U.S.C. §4012a(b)
  description: '(b): (b) Requirement for mortgage loans (1) Regulated lending institutions Each Federal
    entity for lending regulation (after consultation and coordination with the Financial Institutions
    Examination Council established under the Federal Financial Institutions Examination Council Act of
    1974 [ 12 U.S.C. 3…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 42 U.S.C. §4012a(b)(1)
    source_class: flood-statute
    source_url: https://www.law.cornell.edu/uscode/text/42/4012a
    snapshot_id: 2944c4da3beedbac
    fetched_at: '2026-05-22T18:52:10Z'
    content_hash: sha256:114022863187954daaffff5b56d376ea0708930fcf9dc30b6838889948d1dc76
    paragraph_quote: (b) Requirement for mortgage loans (1) Regulated lending institutions Each Federal
      entity for lending regulation (after consultation and coordination with the Financial Institutions
      Examination Council established under the Federal Financial Institutions Examination Council Act
      of 1974 [ 12 U.S.C. 3301 et seq.]) shall by regulation direct regulated lending institutions— (A)
      not to make, increase, extend, or renew any loan secured by improved real estate or a mobile home
      located or to be located in an area that has been identified by the Administrator as an area having
      special flood hazards and in which flood insurance has been made available under the National Flood
      Insurance Act of 1968 [ 42 U.S.C. 4001 et seq.], unless the building or mobile home and any personal
      property securing such loan is covered for the term of the loan by flood insurance in an amount
      at least equal to the outstanding principal balance of the loan or the maximum limit of coverage
      made available under the Act with respect to the particular type of property, whichever is less;
      and (B) to accept private flood insurance as satisfaction of the flood insurance coverage requirement
      under subparagraph (A) if the coverage provided by such private flood insurance meets the requirements
      for coverage under such subparagraph. (2) Federal agency lenders A Federal agency lender may not
      make, increase, extend, or renew any loan secured by improved real estate or a mobile home located
      or to be located in an area that has been identified by the Administrator as an area having special
      flood hazards and in which flood insurance has been made available under the National Flood Insurance
      Act of 1968 , unless the building or mobile home and any personal property securing such loan is
      covered for the term of the loan by flood insurance in the amount provided in paragraph (1)(A).
      Each Federal agency lender shall accept private flood insurance as satisfaction of the flood insurance
      coverage requirement under the preceding sentence if the flood insurance coverage provided by such
      private flood insurance meets the requirements for coverage under such sentence. Each Federal agency
      lender shall issue any regulations necessary to carry out this paragraph. Such regulations shall
      be consistent with and substantially identical to the regulations issued under paragraph (1)(A).
      (3) Government-sponsored enterprises for housing The Federal National Mortgage Association and the
      Federal Home Loan Mortgage Corporation shall implement procedures reasonably designed to ensure
      that, for any loan that is— (A) secured by improved real estate or a mobile home located in an area
      that has been identified, at the time of the origination of the loan or at any time during the term
      of the loan, by the Administrator as an area having special flood hazards and in which flood insurance
      is available under the National Flood Insurance Act of 1968 , and (B) purchased by such entity,
      the building or mobile home and any personal property securing the loan is covered for the term
      of the loan by flood insurance in the amount provided in paragraph (1)(A). The Federal National
      Mortgage Association and the Federal Home Loan Mortgage Corporation shall accept private flood insurance
      as satisfaction of the flood insurance coverage requirement under paragraph (1)(A) if the flood
      insurance coverage provided by such private flood insurance meets the requirements for coverage
      under such paragraph and any requirements established by the Federal National Mortgage Association
      or the Federal Home Loan Mortgage Corporation, respectively, relating to the financial solvency,
      strength, or claims-paying ability of private insurance companies from which the Federal National
      Mortgage Association or the Federal Home Loan Mortgage Corporation will accept private flood insurance
      . (4) Applicability (A) Existing coverage Except as provided in subparagraph (B), paragraph (1)
      shall apply on September 23, 1994 . (B) New coverage Paragraphs (2) and (3) shall apply only with
      respect to any loan made, increased, extended, or renewed after the expiration of the 1-year period
      beginning on September 23, 1994 . Paragraph (1) shall apply with respect to any loan made, increased,
      extended, or renewed by any lender supervised by the Farm Credit Administration only after the expiration
      of the period under this subparagraph. (C) Continued effect of regulations Notwithstanding any other
      provision of this subsection, the regulations to carry out paragraph (1), as in effect immediately
      before September 23, 1994 , shall continue to apply until the regulations issued to carry out paragraph
      (1) as amended by section 522(a) of Public Law 103–325 take effect. (5) Rule of construction Nothing
      in this subsection shall be construed to supersede or limit the authority of a Federal entity for
      lending regulation , the Federal Housing Finance Agency , a Federal agency lender, the Federal National
      Mortgage Association, or the Federal Home Loan Mortgage Corporation to establish requirements relating
      to the financial solvency, strength, or claims-paying ability of private insurance companies from
      which the entity or agency will accept private flood insurance. (6) Notice (A) In general Each lender
      shall disclose to a borrower that is subject to this subsection that—
    drafter_attestation: Verbatim subsection of 42 U.S.C. §4012a from Cornell LII snapshot 2944c4da3beedbac;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: flood-42usc-4012a-i
  canonical_id: flood-42usc-4012a-i
  section: 42 U.S.C. §4012a(i)
  description: '(i): (i) flood insurance is available from private insurance companies that issue standard
    flood insurance policies on behalf of the national flood insurance program or directly from the national
    flood insurance program ; (ii) flood insurance that provides the same level of coverage as a standard
    flood i…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 42 U.S.C. §4012a(b)(1)
    source_class: flood-statute
    source_url: https://www.law.cornell.edu/uscode/text/42/4012a
    snapshot_id: 2944c4da3beedbac
    fetched_at: '2026-05-22T18:52:10Z'
    content_hash: sha256:114022863187954daaffff5b56d376ea0708930fcf9dc30b6838889948d1dc76
    paragraph_quote: (i) flood insurance is available from private insurance companies that issue standard
      flood insurance policies on behalf of the national flood insurance program or directly from the
      national flood insurance program ; (ii) flood insurance that provides the same level of coverage
      as a standard flood insurance policy under the national flood insurance program may be available
      from a private insurance company that issues policies on behalf of the company; and (iii) the borrower
      is encouraged to compare the flood insurance coverage, deductibles, exclusions, conditions and premiums
      associated with flood insurance policies issued on behalf of the national flood insurance program
      and policies issued on behalf of private insurance companies and to direct inquiries regarding the
      availability, cost, and comparisons of flood insurance coverage to an insurance agent. (B) Rule
      of construction Nothing in this paragraph shall be construed as affecting or otherwise limiting
      the authority of a Federal entity for lending regulation to approve any disclosure made by a regulated
      lending institution for purposes of complying with subparagraph (A). (7) Private flood insurance
      defined In this subsection, the term “ private flood insurance ” means an insurance policy that—
      (A) is issued by an insurance company that is—
    drafter_attestation: Verbatim subsection of 42 U.S.C. §4012a from Cornell LII snapshot 2944c4da3beedbac;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: flood-42usc-4012a-i
  canonical_id: flood-42usc-4012a-i
  section: 42 U.S.C. §4012a(i)
  description: '(i): (i) licensed, admitted, or otherwise approved to engage in the business of insurance
    in the State or jurisdiction in which the insured building is located, by the insurance regulator
    of that State or jurisdiction; or (ii) in the case of a policy of difference in conditions, multiple
    peril, all risk,…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 42 U.S.C. §4012a(b)(1)
    source_class: flood-statute
    source_url: https://www.law.cornell.edu/uscode/text/42/4012a
    snapshot_id: 2944c4da3beedbac
    fetched_at: '2026-05-22T18:52:10Z'
    content_hash: sha256:114022863187954daaffff5b56d376ea0708930fcf9dc30b6838889948d1dc76
    paragraph_quote: (i) licensed, admitted, or otherwise approved to engage in the business of insurance
      in the State or jurisdiction in which the insured building is located, by the insurance regulator
      of that State or jurisdiction; or (ii) in the case of a policy of difference in conditions, multiple
      peril, all risk, or other blanket coverage insuring nonresidential commercial property, is [1] recognized,
      or not disapproved, as a surplus lines insurer by the insurance regulator of the State or jurisdiction
      where the property to be insured is located; (B) provides flood insurance coverage which is at least
      as broad as the coverage provided under a standard flood insurance policy under the national flood
      insurance program , including when considering deductibles, exclusions, and conditions offered by
      the insurer; (C) includes—
    drafter_attestation: Verbatim subsection of 42 U.S.C. §4012a from Cornell LII snapshot 2944c4da3beedbac;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: flood-42usc-4012a-i
  canonical_id: flood-42usc-4012a-i
  section: 42 U.S.C. §4012a(i)
  description: '(i): (i) a requirement for the insurer to give 45 days’ written notice of cancellation
    or non-renewal of flood insurance coverage to— (I) the insured; and (II) the regulated lending institution
    or Federal agency lender; (ii) information about the availability of flood insurance coverage under
    the nationa…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 42 U.S.C. §4012a(b)(1)
    source_class: flood-statute
    source_url: https://www.law.cornell.edu/uscode/text/42/4012a
    snapshot_id: 2944c4da3beedbac
    fetched_at: '2026-05-22T18:52:10Z'
    content_hash: sha256:114022863187954daaffff5b56d376ea0708930fcf9dc30b6838889948d1dc76
    paragraph_quote: (i) a requirement for the insurer to give 45 days’ written notice of cancellation
      or non-renewal of flood insurance coverage to— (I) the insured; and (II) the regulated lending institution
      or Federal agency lender; (ii) information about the availability of flood insurance coverage under
      the national flood insurance program ; (iii) a mortgage interest clause similar to the clause contained
      in a standard flood insurance policy under the national flood insurance program ; and (iv) a provision
      requiring an insured to file suit not later than 1 year after date of a written denial of all or
      part of a claim under the policy; and (D) contains cancellation provisions that are as restrictive
      as the provisions contained in a standard flood insurance policy under the national flood insurance
      program .
    drafter_attestation: Verbatim subsection of 42 U.S.C. §4012a from Cornell LII snapshot 2944c4da3beedbac;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: flood-42usc-4012a-c
  canonical_id: flood-42usc-4012a-c
  section: 42 U.S.C. §4012a(c)
  description: '(c): (c) Exceptions to purchase requirements (1) State-owned property Notwithstanding
    the other provisions of this section, flood insurance shall not be required on any State -owned property
    that is covered under an adequate State policy of self-insurance satisfactory to the Administrator
    . The Administr…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 42 U.S.C. §4012a(b)(1)
    source_class: flood-statute
    source_url: https://www.law.cornell.edu/uscode/text/42/4012a
    snapshot_id: 2944c4da3beedbac
    fetched_at: '2026-05-22T18:52:10Z'
    content_hash: sha256:114022863187954daaffff5b56d376ea0708930fcf9dc30b6838889948d1dc76
    paragraph_quote: (c) Exceptions to purchase requirements (1) State-owned property Notwithstanding
      the other provisions of this section, flood insurance shall not be required on any State -owned
      property that is covered under an adequate State policy of self-insurance satisfactory to the Administrator
      . The Administrator shall publish and periodically revise the list of States to which this subsection
      applies. (2) Small loans Notwithstanding any other provision of this section, subsections (a) and
      (b) shall not apply to any loan having— (A) an original outstanding principal balance of $5,000
      or less; and (B) a repayment term of 1 year or less. (3) Detached structures Notwithstanding any
      other provision of this section, flood insurance shall not be required, in the case of any residential
      property, for any structure that is a part of such property but is detached from the primary residential
      structure of such property and does not serve as a residence.
    drafter_attestation: Verbatim subsection of 42 U.S.C. §4012a from Cornell LII snapshot 2944c4da3beedbac;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: flood-42usc-4012a-d
  canonical_id: flood-42usc-4012a-d
  section: 42 U.S.C. §4012a(d)
  description: '(d): (d) Escrow of flood insurance payments (1) Regulated lending institutions (A) Federal
    entities responsible for lending regulations Each Federal entity for lending regulation (after consultation
    and coordination with the Federal Financial Institutions Examination Council) shall, by regulation,
    direct…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 42 U.S.C. §4012a(b)(1)
    source_class: flood-statute
    source_url: https://www.law.cornell.edu/uscode/text/42/4012a
    snapshot_id: 2944c4da3beedbac
    fetched_at: '2026-05-22T18:52:10Z'
    content_hash: sha256:114022863187954daaffff5b56d376ea0708930fcf9dc30b6838889948d1dc76
    paragraph_quote: (d) Escrow of flood insurance payments (1) Regulated lending institutions (A) Federal
      entities responsible for lending regulations Each Federal entity for lending regulation (after consultation
      and coordination with the Federal Financial Institutions Examination Council) shall, by regulation,
      direct that all premiums and fees for flood insurance under the National Flood Insurance Act of
      1968 , for residential improved real estate or a mobile home, shall be paid to the regulated lending
      institution or servicer for any loan secured by the residential improved real estate or mobile home,
      with the same frequency as payments on the loan are made, for the duration of the loan. Except as
      provided in subparagraph (B), upon receipt of any premiums or fees, the regulated lending institution
      or servicer shall deposit such premiums and fees in an escrow account on behalf of the borrower.
      Upon receipt of a notice from the Administrator or the provider of the flood insurance that insurance
      premiums are due, the premiums deposited in the escrow account shall be paid to the provider of
      the flood insurance. (B) Limitation Except as may be required under applicable State law, a Federal
      entity for lending regulation may not direct or require a regulated lending institution to deposit
      premiums or fees for flood insurance under the National Flood Insurance Act of 1968 in an escrow
      account on behalf of a borrower under subparagraph (A)—
    drafter_attestation: Verbatim subsection of 42 U.S.C. §4012a from Cornell LII snapshot 2944c4da3beedbac;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: flood-42usc-4012a-i
  canonical_id: flood-42usc-4012a-i
  section: 42 U.S.C. §4012a(i)
  description: '(i): (i) if— (I) the regulated lending institution has total assets of less than $1,000,000,000;
    and (II) on or before July 6, 2012 , the regulated lending institution— (aa) in the case of a loan
    secured by residential improved real estate or a mobile home, was not required under Federal or State
    law to …'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 42 U.S.C. §4012a(b)(1)
    source_class: flood-statute
    source_url: https://www.law.cornell.edu/uscode/text/42/4012a
    snapshot_id: 2944c4da3beedbac
    fetched_at: '2026-05-22T18:52:10Z'
    content_hash: sha256:114022863187954daaffff5b56d376ea0708930fcf9dc30b6838889948d1dc76
    paragraph_quote: (i) if— (I) the regulated lending institution has total assets of less than $1,000,000,000;
      and (II) on or before July 6, 2012 , the regulated lending institution— (aa) in the case of a loan
      secured by residential improved real estate or a mobile home, was not required under Federal or
      State law to deposit taxes, insurance premiums, fees, or any other charges in an escrow account
      for the entire term of the loan; and (bb) did not have a policy of consistently and uniformly requiring
      the deposit of taxes, insurance premiums, fees, or any other charges in an escrow account for loans
      secured by residential improved real estate or a mobile home; or (ii) in the case of a loan that—
      (I) is in a junior or subordinate position to a senior lien secured by the same residential improved
      real estate or mobile home for which flood insurance is being provided at the time of the origination
      of the loan; (II) is secured by residential improved real estate or a mobile home that is part of
      a condominium, cooperative, or other project development, if the residential improved real estate
      or mobile home is covered by a flood insurance policy that— (aa) meets the requirements that the
      regulated lending institution is required to enforce under subsection (b)(1); (bb) is provided by
      the condominium association, cooperative, homeowners association, or other applicable group; and
      (cc) the premium for which is paid by the condominium association, cooperative, homeowners association,
      or other applicable group as a common expense; (III) is secured by residential improved real estate
      or a mobile home that is used as collateral for a business purpose; (IV) is a home equity line of
      credit; (V) is a nonperforming loan; or (VI) has a term of not longer than 12 months. (2) Federal
      agency lenders Each Federal agency lender shall by regulation require and provide for escrow and
      payment of any flood insurance premiums and fees relating to residential improved real estate and
      mobile homes securing loans made by the Federal agency lender under the circumstances and in the
      manner provided under paragraph (1). Any regulations issued under this paragraph shall be consistent
      with and substantially identical to the regulations issued under paragraph (1). (3) Applicability
      of RESPA Escrow accounts established pursuant to this subsection shall be subject to the provisions
      of section 10 of the Real Estate Settlement Procedures Act of 1974 [ 12 U.S.C. 2609 ]. (4) “Residential
      improved real estate” defined For purposes of this subsection, the term “ residential improved real
      estate ” means improved real estate for which the improvement is a residential building. (5) Applicability
      This subsection shall apply only with respect to any loan made, increased, extended, or renewed
      after the expiration of the 1-year period beginning on September 23, 1994 .
    drafter_attestation: Verbatim subsection of 42 U.S.C. §4012a from Cornell LII snapshot 2944c4da3beedbac;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: flood-42usc-4012a-e
  canonical_id: flood-42usc-4012a-e
  section: 42 U.S.C. §4012a(e)
  description: '(e): (e) Placement of flood insurance by lender (1) Notification to borrower of lack of
    coverage If, at the time of origination or at any time during the term of a loan secured by improved
    real estate or by a mobile home located in an area that has been identified by the Administrator (at
    the time of the…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 42 U.S.C. §4012a(b)(1)
    source_class: flood-statute
    source_url: https://www.law.cornell.edu/uscode/text/42/4012a
    snapshot_id: 2944c4da3beedbac
    fetched_at: '2026-05-22T18:52:10Z'
    content_hash: sha256:114022863187954daaffff5b56d376ea0708930fcf9dc30b6838889948d1dc76
    paragraph_quote: (e) Placement of flood insurance by lender (1) Notification to borrower of lack of
      coverage If, at the time of origination or at any time during the term of a loan secured by improved
      real estate or by a mobile home located in an area that has been identified by the Administrator
      (at the time of the origination of the loan or at any time during the term of the loan) as an area
      having special flood hazards and in which flood insurance is available under the National Flood
      Insurance Act of 1968 [ 42 U.S.C. 4001 et seq.], the lender or servicer for the loan determines
      that the building or mobile home and any personal property securing the loan is not covered by flood
      insurance or is covered by such insurance in an amount less than the amount required for the property
      pursuant to paragraph (1), (2), or (3) of subsection (b), the lender or servicer shall notify the
      borrower under the loan that the borrower should obtain, at the borrower’s expense, an amount of
      flood insurance for the building or mobile home and such personal property that is not less than
      the amount under subsection (b)(1), for the term of the loan. (2) Purchase of coverage on behalf
      of borrower If the borrower fails to purchase such flood insurance within 45 days after notification
      under paragraph (1), the lender or servicer for the loan shall purchase the insurance on behalf
      of the borrower and may charge the borrower for the cost of premiums and fees incurred by the lender
      or servicer for the loan in purchasing the insurance, including premiums or fees incurred for coverage
      beginning on the date on which flood insurance coverage lapsed or did not provide a sufficient coverage
      amount. (3) Termination of force-placed insurance Within 30 days of receipt by the lender or servicer
      of a confirmation of a borrower’s existing flood insurance coverage, the lender or servicer shall—
      (A) terminate any insurance purchased by the lender or servicer under paragraph (2); and (B) refund
      to the borrower all premiums paid by the borrower for any insurance purchased by the lender or servicer
      under paragraph (2) during any period during which the borrower’s flood insurance coverage and the
      insurance coverage purchased by the lender or servicer were each in effect, and any related fees
      charged to the borrower with respect to the insurance purchased by the lender or servicer during
      such period. (4) Sufficiency of demonstration For purposes of confirming a borrower’s existing flood
      insurance coverage, a lender or servicer for a loan shall accept from the borrower an insurance
      policy declarations page that includes the existing flood insurance policy number and the identity
      of, and contact information for, the insurance company or agent. (5) Review of determination regarding
      required purchase (A) In general The borrower and lender for a loan secured by improved real estate
      or a mobile home may jointly request the Administrator to review a determination of whether the
      building or mobile home is located in an area having special flood hazards. Such request shall be
      supported by technical information relating to the improved real estate or mobile home. Not later
      than 45 days after the Administrator receives the request, the Administrator shall review the determination
      and provide to the borrower and the lender with a letter stating whether or not the building or
      mobile home is in an area having special flood hazards. The determination of the Administrator shall
      be final. (B) Effect of determination Any person to whom a borrower provides a letter issued by
      the Administrator pursuant to subparagraph (A), stating that the building or mobile home securing
      the loan of the borrower is not in an area having special flood hazards, shall have no obligation
      under this title [2] to require the purchase of flood insurance for such building or mobile home
      during the period determined by the Administrator, which shall be specified in the letter and shall
      begin on the date on which such letter is provided. (C) Effect of failure to respond If a request
      under subparagraph (A) is made in connection with the origination of a loan and the Administrator
      fails to provide a letter under subparagraph (A) before the later of (i) the expiration of the 45-day
      period under such subparagraph, or (ii) the closing of the loan, no person shall have an obligation
      under this title 2 to require the purchase of flood insurance for the building or mobile home securing
      the loan until such letter is provided. (6) Applicability This subsection shall apply to all loans
      outstanding on or after September 23, 1994 .
    drafter_attestation: Verbatim subsection of 42 U.S.C. §4012a from Cornell LII snapshot 2944c4da3beedbac;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: flood-42usc-4012a-f
  canonical_id: flood-42usc-4012a-f
  section: 42 U.S.C. §4012a(f)
  description: '(f): (f) Civil monetary penalties for failure to require flood insurance or notify (1)
    Civil monetary penalties against regulated lenders Any regulated lending institution that is found
    to have a pattern or practice of committing violations under paragraph (2) shall be assessed a civil
    penalty by the app…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 42 U.S.C. §4012a(b)(1)
    source_class: flood-statute
    source_url: https://www.law.cornell.edu/uscode/text/42/4012a
    snapshot_id: 2944c4da3beedbac
    fetched_at: '2026-05-22T18:52:10Z'
    content_hash: sha256:114022863187954daaffff5b56d376ea0708930fcf9dc30b6838889948d1dc76
    paragraph_quote: (f) Civil monetary penalties for failure to require flood insurance or notify (1)
      Civil monetary penalties against regulated lenders Any regulated lending institution that is found
      to have a pattern or practice of committing violations under paragraph (2) shall be assessed a civil
      penalty by the appropriate Federal entity for lending regulation in the amount provided under paragraph
      (5). (2) Lender violations The violations referred to in paragraph (1) shall include— (A) making,
      increasing, extending, or renewing loans in violation of—
    drafter_attestation: Verbatim subsection of 42 U.S.C. §4012a from Cornell LII snapshot 2944c4da3beedbac;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: flood-42usc-4012a-i
  canonical_id: flood-42usc-4012a-i
  section: 42 U.S.C. §4012a(i)
  description: '(i): (i) the regulations issued pursuant to subsection (b) of this section; (ii) the escrow
    requirements under subsection (d) of this section; or (iii) the notice requirements under section
    1364 of the National Flood Insurance Act of 1968 [ 42 U.S.C. 4104a ]; or (B) failure to provide notice
    or purchase …'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 42 U.S.C. §4012a(b)(1)
    source_class: flood-statute
    source_url: https://www.law.cornell.edu/uscode/text/42/4012a
    snapshot_id: 2944c4da3beedbac
    fetched_at: '2026-05-22T18:52:10Z'
    content_hash: sha256:114022863187954daaffff5b56d376ea0708930fcf9dc30b6838889948d1dc76
    paragraph_quote: (i) the regulations issued pursuant to subsection (b) of this section; (ii) the escrow
      requirements under subsection (d) of this section; or (iii) the notice requirements under section
      1364 of the National Flood Insurance Act of 1968 [ 42 U.S.C. 4104a ]; or (B) failure to provide
      notice or purchase flood insurance coverage in violation of subsection (e) of this section. (3)
      Civil monetary penalties against GSE’s (A) In general If the Federal National Mortgage Association
      or the Federal Home Loan Mortgage Corporation is found by the Director of the Federal Housing Finance
      Agency to have a pattern or practice of purchasing loans in violation of the procedures established
      pursuant to subsection (b)(3), the Director of such Office [3] shall assess a civil penalty against
      such enterprise in the amount provided under paragraph (5) of this subsection. (B) “Enterprise”
      defined For purposes of this subsection, the term “ enterprise ” means the Federal National Mortgage
      Association or the Federal Home Loan Mortgage Corporation. (4) Notice and hearing A penalty under
      this subsection may be issued only after notice and an opportunity for a hearing on the record.
      (5) Amount A civil monetary penalty under this subsection may not exceed $2,000 for each violation
      under paragraph (2) or paragraph (3). (6) Lender compliance Notwithstanding any State or local law,
      for purposes of this subsection, any regulated lending institution that purchases flood insurance
      or renews a contract for flood insurance on behalf of or as an agent of a borrower of a loan for
      which flood insurance is required shall be considered to have complied with the regulations issued
      under subsection (b). (7) Effect of transfer on liability Any sale or other transfer of a loan by
      a regulated lending institution that has committed a violation under paragraph (1), that occurs
      subsequent to the violation, shall not affect the liability of the transferring lender with respect
      to any penalty under this subsection. A lender shall not be liable for any violations relating to
      a loan committed by another regulated lending institution that previously held the loan. (8) Deposit
      of penalties Any penalties collected under this subsection shall be paid into the National Flood
      Mitigation Fund under section 1367 of the National Flood Insurance Act of 1968 [ 42 U.S.C. 4104d
      ]. (9) Additional penalties Any penalty under this subsection shall be in addition to any civil
      remedy or criminal penalty otherwise available. (10) Statute of limitations No penalty may be imposed
      under this subsection after the expiration of the 4-year period beginning on the date of the occurrence
      of the violation for which the penalty is authorized under this subsection.
    drafter_attestation: Verbatim subsection of 42 U.S.C. §4012a from Cornell LII snapshot 2944c4da3beedbac;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: flood-42usc-4012a-g
  canonical_id: flood-42usc-4012a-g
  section: 42 U.S.C. §4012a(g)
  description: '(g): (g) Other actions to remedy pattern of noncompliance (1) Authority of Federal entities
    for lending regulation A Federal entity for lending regulation may require a regulated lending institution
    to take such remedial actions as are necessary to ensure that the regulated lending institution complies
    w…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 42 U.S.C. §4012a(b)(1)
    source_class: flood-statute
    source_url: https://www.law.cornell.edu/uscode/text/42/4012a
    snapshot_id: 2944c4da3beedbac
    fetched_at: '2026-05-22T18:52:10Z'
    content_hash: sha256:114022863187954daaffff5b56d376ea0708930fcf9dc30b6838889948d1dc76
    paragraph_quote: (g) Other actions to remedy pattern of noncompliance (1) Authority of Federal entities
      for lending regulation A Federal entity for lending regulation may require a regulated lending institution
      to take such remedial actions as are necessary to ensure that the regulated lending institution
      complies with the requirements of the national flood insurance program if the Federal agency for
      lending regulation makes a determination under paragraph (2) regarding the regulated lending institution.
      (2) Determination of violations A determination under this paragraph shall be a finding that— (A)
      the regulated lending institution has engaged in a pattern and practice of noncompliance in violation
      of the regulations issued pursuant to subsection (b), (d), or (e) or the notice requirements under
      section 1364 of the National Flood Insurance Act of 1968 [ 42 U.S.C. 4104a ]; and (B) the regulated
      lending institution has not demonstrated measurable improvement in compliance despite the assessment
      of civil monetary penalties under subsection (f).
    drafter_attestation: Verbatim subsection of 42 U.S.C. §4012a from Cornell LII snapshot 2944c4da3beedbac;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: flood-42usc-4012a-h
  canonical_id: flood-42usc-4012a-h
  section: 42 U.S.C. §4012a(h)
  description: '(h): (h) Fee for determining location Notwithstanding any other Federal or State law,
    any person who makes a loan secured by improved real estate or a mobile home or any servicer for such
    a loan may charge a reasonable fee for the costs of determining whether the building or mobile home
    securing the loan…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 42 U.S.C. §4012a(b)(1)
    source_class: flood-statute
    source_url: https://www.law.cornell.edu/uscode/text/42/4012a
    snapshot_id: 2944c4da3beedbac
    fetched_at: '2026-05-22T18:52:10Z'
    content_hash: sha256:114022863187954daaffff5b56d376ea0708930fcf9dc30b6838889948d1dc76
    paragraph_quote: '(h) Fee for determining location Notwithstanding any other Federal or State law,
      any person who makes a loan secured by improved real estate or a mobile home or any servicer for
      such a loan may charge a reasonable fee for the costs of determining whether the building or mobile
      home securing the loan is located in an area having special flood hazards, but only in accordance
      with the following requirements: (1) Borrower fee The borrower under such a loan may be charged
      the fee, but only if the determination— (A) is made pursuant to the making, increasing, extending,
      or renewing of the loan that is initiated by the borrower; (B) is made pursuant to a revision or
      updating under section 1360(f) [4] [ 42 U.S.C. 4101(f) ] of the floodplain areas and flood- risk
      zones or publication of a notice or compendia under subsection (h) or (i) of section 1360 [4] [
      42 U.S.C. 4101(h) , (i)] that affects the area in which the improved real estate or mobile home
      securing the loan is located or that, in the determination of the Administrator, may reasonably
      be considered to require a determination under this subsection; or (C) results in the purchase of
      flood insurance coverage pursuant to the requirement under subsection (e)(2). (2) Purchaser or transferee
      fee The purchaser or transferee of such a loan may be charged the fee in the case of sale or transfer
      of the loan. ( Pub. L. 93–234, title I, § 102 , Dec. 31, 1973 , 87 Stat. 978 ; Pub. L. 98–181, title
      I [title IV, § 451(e)(1)], Nov. 30, 1983 , 97 Stat. 1229 ; Pub. L. 103–325, title V , §§ 522–526,
      531, 582(c), Sept. 23, 1994 , 108 Stat. 2257–2262 , 2267, 2287; Pub. L. 110–289, div. A, title I,
      § 1161(e) , July 30, 2008 , 122 Stat. 2780 ; Pub. L. 112–141, div. F, title II , §§ 100208, 100209(a),
      100238(a)(1), 100239(a), 100244(a), July 6, 2012 , 126 Stat. 919 , 920, 958, 966; Pub. L. 112–281,
      § 1 , Jan. 14, 2013 , 126 Stat. 2485 ; Pub. L. 113–89 , §§ 13(a), 25(a), Mar. 21, 2014 , 128 Stat.
      1026 , 1030.) [1] So in original. The word “is” probably should not appear. [2] See References in
      Text note below. [3] So in original. Probably should be “Agency”. [4] So in original. Probably should
      be followed by “of the National Flood Insurance Act of 1968 ”.'
    drafter_attestation: Verbatim subsection of 42 U.S.C. §4012a from Cornell LII snapshot 2944c4da3beedbac;
      body isolated between nav and notes; substring-verified.
  judgment: false
