Basics
Define Flood
A general and temporary condition of partial or complete inundation of two or more acres of normally dry land area, or of two or more properties
What are high risk areas?
Areas where floods are more likely to damage property
The person Mortage Insurance protects.
What is the lender?
What is flood insurance for?
To protect owners homes and buildings
What happens to rates of flood insurance in high risk areas?
The rates increase
This is cancellable when the home has 20% equity.
What is Mortgage Insurance?
Who provides flood insurance?
The NFIP
True or False
Government backed mortgages in high risk areas are required to have flood insurance
True
These agencies require mortgage insurance to take out loans from them.
What are FHA and USDA.
What does NFIP stand for?
The National Flood Insurance Program
What percent of NFIP's claims come from low-moderate risk areas?
40%
What can happen when you refuse to get mortgage insurance?
Refusal to lend you a loan.
What does FEMA do?
Manages the NFIP and helps prevent and respond to a various amount of natural hazards
True or False
South Park in a high-risk flood area?
False
What does CFPB stand for?
Consumer Finacial Protection Bureau.