Fed Keeps Flood-Prone Loan Rules Steady for Years
Published Date: 11/17/2025
Notice
Summary
The Federal Reserve is keeping the rules for banks about loans on flood-prone properties the same for the next three years. This means banks must keep records and share info about these loans, but no new changes or costs are coming. If you’re a bank or lender, keep doing what you’ve been doing—nothing new to worry about, and the deadline to follow these rules is extended!
Analyzed Economic Effects
2 provisions identified: 0 benefits, 2 costs, 0 mixed.
Banks must keep flood-loan records
State member banks and their servicers must continue to keep flood-hazard documentation, notify servicers and borrowers, and notify FEMA about servicer identity or changes. The collection (FR H-2, OMB No. 7100-0280) is extended for three years; the Board estimates 706 respondents and a total of 33,983 annual burden hours. The recordkeeping and disclosure requirements remain event-generated and unchanged.
Homebuyers must maintain flood insurance
If you borrow from a state member bank for real estate in a Special Flood Hazard Area, the lender must not make, increase, extend, or renew the loan unless the property is covered by flood insurance for the term of the loan. Banks must also notify borrowers and servicers about properties in flood hazard areas and flood insurance requirements; those notification rules are extended unchanged for three years under FR H-2 (OMB No. 7100-0280).
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