Which of the following is required by the Flood Disaster Protection Act?

• A. Flood determination
• B. Insurance for properties in SFHA
• C. Notice to borrower
• D. All of the above

Answer: (D)

The Flood Disaster Protection Act requires three linked duties from lenders for federally related mortgage loans: first, a flood determination to identify whether the property sits in a Special Flood Hazard Area; second, if it is in an SFHA, mandatory flood insurance must be in place as a condition of the loan; and third, clear notice to the borrower about the flood insurance requirement and the availability of coverage. Because all three elements are mandated, the correct choice is that all of the above are required. This framework ensures borrowers have protection through insurance when their property's location makes them eligible for NFIP coverage, and that they’re informed about that requirement from the outset.