source:
  type: regulation
  id: flood-12cfr-339.3
  authority: 12 CFR §339.3 — Loans in Areas Having Special Flood Hazards (FDIC)
  description: '12 CFR §339.3 is the FDIC''s implementation of the §4012a mandatory-purchase

    rule for FDIC-supervised institutions.

    '
obligations:
- id: flood-12cfr-339.3-a
  canonical_id: flood-12cfr-339.3-a
  section: 12 CFR §339.3(a)
  description: '(a): (a) In general. An FDIC-supervised institution shall not make, increase, extend,
    or renew any designated loan unless the building or mobile home and any personal property securing
    the loan is covered by flood insurance for the term of the loan. The amount of insurance must be at
    least equal to the l…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §339.3(a)
    source_class: flood-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/339.3
    snapshot_id: efd9bcb37b5af1f9
    fetched_at: '2026-05-22T18:52:41Z'
    content_hash: sha256:72c331360b267129f3f241f9280427a4c653f739b884982d3cbe0e0aa4127169
    paragraph_quote: (a) In general. An FDIC-supervised institution shall not make, increase, extend,
      or renew any designated loan unless the building or mobile home and any personal property securing
      the loan is covered by flood insurance for the term of the loan. The amount of insurance must be
      at least equal to the lesser of the outstanding principal balance of the designated loan or the
      maximum limit of coverage available for the particular type of property under the Act . Flood insurance
      coverage under the Act is limited to the building or mobile home and any personal property that
      secures a loan and not the land itself.
    drafter_attestation: Verbatim subsection of 12 CFR §339.3 from Cornell LII snapshot efd9bcb37b5af1f9;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: flood-12cfr-339.3-b
  canonical_id: flood-12cfr-339.3-b
  section: 12 CFR §339.3(b)
  description: '(b): (b) Table funded loans. An FDIC-supervised institution that acquires a loan from
    a mortgage broker or other entity through table funding shall be considered to be making a loan for
    the purpose of this part.'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §339.3(a)
    source_class: flood-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/339.3
    snapshot_id: efd9bcb37b5af1f9
    fetched_at: '2026-05-22T18:52:41Z'
    content_hash: sha256:72c331360b267129f3f241f9280427a4c653f739b884982d3cbe0e0aa4127169
    paragraph_quote: (b) Table funded loans. An FDIC-supervised institution that acquires a loan from
      a mortgage broker or other entity through table funding shall be considered to be making a loan
      for the purpose of this part.
    drafter_attestation: Verbatim subsection of 12 CFR §339.3 from Cornell LII snapshot efd9bcb37b5af1f9;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: flood-12cfr-339.3-c
  canonical_id: flood-12cfr-339.3-c
  section: 12 CFR §339.3(c)
  description: '(c): (c) Private flood insurance —(1) Mandatory acceptance. An FDIC-supervised institution
    must accept private flood insurance , as defined in § 339.2 , in satisfaction of the flood insurance
    purchase requirement in paragraph (a) of this section if the policy meets the requirements for coverage
    in paragr…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §339.3(a)
    source_class: flood-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/339.3
    snapshot_id: efd9bcb37b5af1f9
    fetched_at: '2026-05-22T18:52:41Z'
    content_hash: sha256:72c331360b267129f3f241f9280427a4c653f739b884982d3cbe0e0aa4127169
    paragraph_quote: '(c) Private flood insurance —(1) Mandatory acceptance. An FDIC-supervised institution
      must accept private flood insurance , as defined in § 339.2 , in satisfaction of the flood insurance
      purchase requirement in paragraph (a) of this section if the policy meets the requirements for coverage
      in paragraph (a) of this section. (2) Compliance aid for mandatory acceptance. An FDIC-supervised
      institution may determine that a policy meets the definition of private flood insurance in § 339.2
      , without further review of the policy, if the following statement is included within the policy
      or as an endorsement to the policy: “This policy meets the definition of private flood insurance
      contained in 42 U.S.C. 4012a(b)(7) and the corresponding regulation.” (3) Discretionary acceptance.
      An FDIC-supervised institution may accept a flood insurance policy issued by a private insurer that
      is not issued under the NFIP and that does not meet the definition of private flood insurance in
      § 339.2 in satisfaction of the flood insurance purchase requirement in paragraph (a) of this section
      if the policy:'
    drafter_attestation: Verbatim subsection of 12 CFR §339.3 from Cornell LII snapshot efd9bcb37b5af1f9;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: flood-12cfr-339.3-i
  canonical_id: flood-12cfr-339.3-i
  section: 12 CFR §339.3(i)
  description: '(i): (i) Provides coverage in the amount required by paragraph (a) of this section; (ii)
    Is issued by an insurer that is licensed, admitted, or otherwise approved to engage in the business
    of insurance by the insurance regulator of the State or jurisdiction in which the property to be insured
    is located;…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §339.3(a)
    source_class: flood-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/339.3
    snapshot_id: efd9bcb37b5af1f9
    fetched_at: '2026-05-22T18:52:41Z'
    content_hash: sha256:72c331360b267129f3f241f9280427a4c653f739b884982d3cbe0e0aa4127169
    paragraph_quote: '(i) Provides coverage in the amount required by paragraph (a) of this section; (ii)
      Is issued by an insurer that is licensed, admitted, or otherwise approved to engage in the business
      of insurance by the insurance regulator of the State or jurisdiction in which the property to be
      insured is located; or in the case of a policy of difference in conditions, multiple peril, all
      risk, or other blanket coverage insuring nonresidential commercial property, is issued by a surplus
      lines insurer recognized, or not disapproved, by the insurance regulator of the State or jurisdiction
      where the property to be insured is located; (iii) Covers both the mortgagor(s) and the mortgagee(s)
      as loss payees, except in the case of a policy that is provided by a condominium association, cooperative,
      homeowners association, or other applicable group and for which the premium is paid by the condominium
      association, cooperative, homeowners association, or other applicable group as a common expense;
      and (iv) Provides sufficient protection of the designated loan , consistent with general safety
      and soundness principles, and the FDIC-supervised institution documents its conclusion regarding
      sufficiency of the protection of the loan in writing. (4) Mutual aid societies. Notwithstanding
      the requirements of paragraph (c)(3) of this section, an FDIC-supervised institution may accept
      a plan issued by a mutual aid society , as defined in § 339.2, in satisfaction of the flood insurance
      purchase requirement in paragraph (a) of this section if:'
    drafter_attestation: Verbatim subsection of 12 CFR §339.3 from Cornell LII snapshot efd9bcb37b5af1f9;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: flood-12cfr-339.3-i
  canonical_id: flood-12cfr-339.3-i
  section: 12 CFR §339.3(i)
  description: '(i): (i) The FDIC has determined that such plans qualify as flood insurance for purposes
    of the Act ; (ii) The plan provides coverage in the amount required by paragraph (a) of this section;
    (iii) The plan covers both the mortgagor(s) and the mortgagee(s) as loss payees; and (iv) The plan
    provides suffic…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §339.3(a)
    source_class: flood-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/339.3
    snapshot_id: efd9bcb37b5af1f9
    fetched_at: '2026-05-22T18:52:41Z'
    content_hash: sha256:72c331360b267129f3f241f9280427a4c653f739b884982d3cbe0e0aa4127169
    paragraph_quote: (i) The FDIC has determined that such plans qualify as flood insurance for purposes
      of the Act ; (ii) The plan provides coverage in the amount required by paragraph (a) of this section;
      (iii) The plan covers both the mortgagor(s) and the mortgagee(s) as loss payees; and (iv) The plan
      provides sufficient protection of the designated loan , consistent with general safety and soundness
      principles, and the FDIC-supervised institution documents its conclusion regarding sufficiency of
      the protection of the loan in writing. [ 80 FR 43249 , July 21, 2015, as amended at 84 FR 4972 ,
      Feb. 20, 2019] CFR Toolbox Law about... Articles from Wex Table of Popular Names Parallel Table
      of Authorities Accessibility About LII Contact us Advertise here Help Terms of use Privacy
    drafter_attestation: Verbatim subsection of 12 CFR §339.3 from Cornell LII snapshot efd9bcb37b5af1f9;
      body isolated between nav and notes; substring-verified.
  judgment: false
