The 2007 edition of FEMA's Mandatory Purchase of Flood Insurance Guidelines provides two new samples of the Notice to Borrower in Special Flood Hazard Area, one each for participating and non-participating communities. The Notice to Borrower is used to satisfy the federal requirement that regulated lenders, as a condition of making, increasing, extending or renewing a loan, provide notice in writing to the borrower when improved property securing the loan is determined to be in a FEMA designated Special Flood Hazard Area. The Notice to Borrower also informs the borrower whether or not federal disaster relief assistance is available based upon the community's participation status.

We have updated Floodcert.com such that we provide a Notice to Borrower which conforms to the sample language FEMA provides in the 2007 edition as described above. As we have done in the past, CoreLogic will offer an alternative Notice to Borrower built on FEMA's version, so that it meets the minimum federal requirements for compliance, but which also addresses some additional topics of interest for both lenders and their borrowers. For example, CoreLogic's alternative language speaks to: (1) the potential that the mandatory purchase of flood insurance requirement may be lifted if the Flood Insurance Rate Map ("FIRM") or a Flood Hazard Boundary Map (FHBM) is revised or amended by FEMA; and (2) the possibility that federal flood insurance may not be available because of the property's designation as Section 1316 under the NFIP or because it is subject to Coastal Barrier Resources Area or Otherwise Protected Area restrictions. Lenders may opt to receive either the new FEMA version or the new CoreLogic version of these notices via Floodcert.com.

Should you have any questions regarding these new versions of the Notice to Borrower, please feel free to contact our Compliance Department at 1(800) 447-1772.