•A Notice to Borrower of Property in Special Flood Hazards and Availability of Federal Disaster Relief Assistance must be mailed or delivered to a borrower (and servicer) whenever the real estate that is to secure a loan is located in a flood hazard area. A sample form containing the language provided in the statute is located at the end of this chapter. The written notice must include the following important information:
•A warning, in a form approved by the Administrator of FEMA, that the building is or will be located in a special flood hazard area;
•A description of the flood insurance purchase requirements set forth in section 102(b) of the Flood Disaster Protection Act of 1973, as amended (42 U.S.C. 4012a(b));
•A statement, where applicable, that flood insurance coverage is available from private insurance companies that issue standard flood insurance policies on behalf of NFIP or directly from NFIP; and
•A statement that flood insurance that provides the same level of coverage as a standard flood insurance policy under NFIP may also be available from a private insurance company that issues policies on behalf of the company.
•A statement that 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 NFIP and policies issued on behalf of private insurance companies and that the borrower should direct inquiries regarding the availability, cost, and comparisons of flood insurance coverage to an insurance agent; and
•A statement whether Federal disaster relief assistance may be available in the event of damage to the building or mobile home caused by flooding in a Federally declared disaster.