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A national bank or Federal savings association shall use the standard flood hazard determination form developed by the Administrator of FEMA when determining whether the building or mobile home offered as collateral security for a loan is or will be located in a special flood hazard area in which flood insurance is available under the Act.
If a property is purchased that is in a Special Flood Hazard Area flood insurance is required by the lender and the VA. Are you wondering how to find out if you need flood insurance? The NFIP, National Flood Insurance Program, designates the flood hazard zones across the United States.