103D CONGRESS
2D SESSION
H. R. 3191
AN ACT
To revise the national flood insurance program to
promote compliance with requirements for man-
datory purchase of flood insurance, to provide as-
sistance for mitigation activities designed to re-
duce damages to structures subject to flooding
and shoreline erosion, and to increase the maxi-
mum coverage amounts under the program, and
for other purposes.
103D CONGRESS
2D SESSION
H. R. 3191
AN ACT
To revise the national flood insurance program to promote
compliance with requirements for mandatory purchase
of flood insurance, to provide assistance for mitigation
activities designed to reduce damages to structures sub-
ject to flooding and shoreline erosion, and to increase
the maximum coverage amounts under the program, and
for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘National Flood Insurance Reform Act of 1994’’.
(b) TABLE OF CONTENTS.—
Sec. 1. Short title and table of contents.
Sec. 2. Declaration of purpose under National Flood Insurance Act of 1968.
TITLE I—DEFINITIONS
Sec. 101. Flood Disaster Protection Act of 1973.
Sec. 102. National Flood Insurance Act of 1968.
TITLE II—COMPLIANCE AND INCREASED PARTICIPATION
Sec. 201. Existing flood insurance purchase requirements.
Sec. 202. Expanded flood insurance purchase requirements.
Sec. 203. Escrow of flood insurance payments.
Sec. 204. Placement of flood insurance by lenders.
Sec. 205. Penalties for failure to require flood insurance or notify.
Sec. 206. Ongoing compliance with flood insurance purchase requirements.
Sec. 207. Fees for determining applicability of flood insurance purchase re-
quirements.
Sec. 208. Notice requirements.
Sec. 209. Standard hazard determination forms.
Sec. 210. Examinations regarding compliance.
Sec. 211. Financial Institutions Examination Council.
Sec. 212. Clerical amendments.
TITLE III—RATINGS AND INCENTIVES FOR COMMUNITY
FLOODPLAIN MANAGEMENT PROGRAMS
Sec. 301. Community rating system and incentives for community floodplain
management.
Sec. 302. Funding.
TITLE IV—MITIGATION OF FLOOD RISKS
Sec. 401. Repeal of flooded property purchase and loan program.
Sec. 402. Termination of erosion-threatened structures program.
Sec. 403. Mitigation assistance program.
Sec. 404. Establishment of National Flood Mitigation Fund.
Sec. 405. Insurance premium mitigation surcharge.
Sec. 406. Study of mitigation insurance.
TITLE V—FLOOD INSURANCE TASK FORCE
Sec. 501. Flood Insurance Interagency Task Force.
TITLE VI—MISCELLANEOUS PROVISIONS
Sec. 601. Extension of flood insurance program.
Sec. 602. Limitation on premium increases.
Sec. 603. Maximum flood insurance coverage amounts.
Sec. 604. Flood insurance program arrangements with private insurance enti-
ties.
Sec. 605. Updating of flood maps.
Sec. 606. Technical Mapping Advisory Council.
Sec. 607. Evaluation of erosion hazards.
Sec. 608. Study of economic effects of charging actuarially-based premium
rates for pre-firm structures.
Sec. 609. Effective dates of policies.
Sec. 610. Regulations.
Sec. 611. Relation to State and local laws.
SEC. 2. DECLARATION OF PURPOSE UNDER NATIONAL
FLOOD INSURANCE ACT OF 1968.
Section 1302(e) of the National Flood Insurance Act
of 1968 (42 U.S.C. 4001(e)) is amended—
(1) by redesignating clauses (3), (4), and (5),
as clauses (4), (5), and (6), respectively; and
(2) by inserting after the comma at the end of
clause (2) the following: ‘‘(3) encourage State and
local governments to protect natural and beneficial
floodplain 
functions 
that 
reduce 
flood-related
losses,’’.
TITLE I—DEFINITIONS
SEC. 101. FLOOD DISASTER PROTECTION ACT OF 1973.
(a) IN GENERAL.—Section 3(a) of the Flood Disaster
Protection Act of 1973 (42 U.S.C. 4003(a)) is amended—
(1) by striking paragraph (5) and inserting the
following new paragraph:
‘‘(5) ‘Federal entity for lending regulation’
means the Board of Governors of the Federal Re-
serve System, the Federal Deposit Insurance Cor-
poration, the Comptroller of the Currency, the Office
of Thrift Supervision, and the National Credit
Union Administration, and with respect to a particu-
lar regulated lending institution means the entity
primarily responsible for the supervision, approval,
or regulation of the institution;’’;
(2) in paragraph (6), by striking the period at
the end and inserting a semicolon; and
(3) by inserting after paragraph (6) the follow-
ing new paragraphs:
‘‘(7) ‘Federal agency lender’ means a Federal
agency that makes direct loans secured by improved
real estate or a mobile home, to the extent such
agency acts in such capacity;
‘‘(8) ‘lender’ includes any regulated lending in-
stitution, other lending institution, and Federal
agency lender, but does not include any agency en-
gaged primarily in the purchase of mortgage loans;
‘‘(9) ‘other lending institution’ means any lend-
ing institution that is not subject to the supervision,
approval, regulation, or insuring of any Federal en-
tity for lending regulation and that is not a Federal
agency lender, but does not include institutions en-
gaged primarily in the purchase of mortgage loans;
‘‘(10) ‘regulated lending institution’ means any
bank, savings and loan association, credit union, or
similar institution subject to the supervision, ap-
proval, regulation, or insuring of a Federal entity for
lending regulation; and
‘‘(11) ‘servicer’ means the person responsible
for receiving any scheduled periodic payments from
a borrower pursuant to the terms of a loan, includ-
ing amounts for taxes, insurance premiums, and
other charges with respect to the property, and mak-
ing the payments of principal and interest and such
other payments with respect to the amounts received
from the borrower as may be required pursuant to
the terms of the loan.’’.
(b) CONFORMING AMENDMENT.—Section 202(b) of
the Flood Disaster Protection Act of 1973 (42 U.S.C.
4106(b)) is amended by striking ‘‘Federal instrumentality
described in such section shall by regulation require the
institutions’’ and inserting ‘‘Federal entity for lending reg-
ulation (with respect to regulated lending institutions), the
Secretary of Housing and Urban Development (with re-
spect to other lending institutions), and the appropriate
head of each Federal agency lender, shall by regulation
require the lenders’’.
SEC. 102. NATIONAL FLOOD INSURANCE ACT OF 1968.
(a) IN GENERAL.—Section 1370(a) of the National
Flood Insurance Act of 1968 (42 U.S.C. 4121(a)) is
amended—
(1) in paragraph (5), by striking ‘‘and’’ at the
end;
(2) in paragraph (6), by striking the period at
the end and inserting a semicolon; and
(3) by inserting after paragraph (6) the follow-
ing new paragraphs:
‘‘(7) the term ‘repetitive loss structure’ means
a structure covered by a contract for flood insurance
under this title that has incurred flood-related dam-
age on 2 occasions during a 10-year period ending
on the date of the event for which a second claim
is made, in which the cost of repair, on the average,
equaled or exceeded 25 percent of the value of the
structure at the time of each such flood event;
‘‘(8) the term ‘coastal’ means relating to the
coastlines and bays of the tidal waters of the United
States or the shorelines of the Great Lakes, but does
not refer to bayous, riverine areas, and riverine por-
tions of estuaries;
‘‘(9) the term ‘Federal agency lender’ means a
Federal agency that makes direct loans secured by
improved real estate or a mobile home, to the extent
such agency acts in such capacity;
‘‘(10) the term ‘Federal entity for lending regu-
lation’ means the Board of Governors of the Federal
Reserve System, the Federal Deposit Insurance Cor-
poration, the Comptroller of the Currency, the Office
of Thrift Supervision, and the National Credit
Union Administration, and with respect to a particu-
lar regulated lending institution means the entity
primarily responsible for the supervision, approval,
or regulation of the institution;
‘‘(11) the term ‘lender’ includes any regulated
lending institution, other lending institution, and
Federal agency lender, but does not include any
agency engaged primarily in the purchase of mort-
gage loans;
‘‘(12) the term ‘natural and beneficial flood-
plain functions’ means—
‘‘(A) the functions associated with the nat-
ural or relatively undisturbed floodplain that (i)
moderate flooding, retain flood waters, reduce
erosion and sedimentation, and mitigate the ef-
fect of waves and storm surge from storms, and
(ii) reduce flood related damage; and
‘‘(B) ancillary beneficial functions, includ-
ing maintenance of water quality and recharge
of ground water, that reduce flood related dam-
age;
‘‘(13) the term ‘regulated lending institution’
means a bank, savings and loan association, credit
union, or similar institution subject to the super-
TITLE II—COMPLIANCE AND
INCREASED PARTICIPATION
SEC. 201. EXISTING FLOOD INSURANCE PURCHASE RE-
QUIREMENTS.
Section 102(a) of the Flood Disaster Protection Act
of 1973 (42 U.S.C. 4012a(a)) is amended—
(1) by inserting after ‘‘(a)’’ the following: ‘‘RE-
QUIREMENT FOR FEDERAL ASSISTANCE FOR ACQUI-
SITION OR CONSTRUCTION.—’’; and
(2) by adding at the end the following new sen-
tence: ‘‘This subsection may not be construed to per-
mit the provision of any amount of financial assist-
ance with respect to any building or mobile home
and related personal property for which flood insur-
ance is required under this subsection, unless the re-
quirements under this subsection are complied with
in full. The prohibitions and requirements of this
subsection relating to financial assistance may not
be waived for any purpose.’’.
SEC. 202. EXPANDED FLOOD INSURANCE PURCHASE RE-
QUIREMENTS.
Section 102(b) of the Flood Disaster Protection Act
of 1973 (42 U.S.C. 4012a(b)) is amended to read as fol-
lows:
‘‘(b) REQUIREMENT FOR MORTGAGE LOANS.—
‘‘(1) REGULATED
LENDING
INSTITUTIONS.—
Each Federal entity for lending regulation (after
consultation and coordination with the Financial In-
stitutions Examination Council established under the
Federal Financial Institutions Examination Council
Act of 1974) shall by regulation direct regulated
lending institutions not to make, increase, extend, or
renew, after the expiration of 60 days following the
date of the enactment of this Act, any loan secured
by improved real estate or a mobile home located or
to be located in an area that has been identified by
the Director as an area having special flood hazards
and in which flood insurance has been made avail-
able under the National Flood Insurance Act of
1968, unless the building or mobile home and any
personal property securing such loan is covered for
the term of the loan by flood insurance in an
amount at least equal to the outstanding principal
balance of the loan or the maximum limit of cov-
erage made available under the Act with respect to
the particular type of property, whichever is less.
‘‘(2) OTHER
LENDING
INSTITUTIONS.—The
Secretary of Housing and Urban Development (after
consultation and coordination with the Financial In-
stitutions Examination Council) shall by regulation
direct that—
‘‘(A) any other lending institution may not
make, increase, extend, or renew any loan se-
cured by improved real estate consisting of a 1-
to 4-family residence or a mobile home located
or to be located in an area that has been identi-
fied by the Director of the Federal Emergency
Management Agency as an area having special
flood hazards and in which flood insurance has
been made available under the National Flood
Insurance Act of 1968, unless the building or
mobile home and any personal property secur-
ing such loan is covered for the term of the loan
by flood insurance in the amount provided in
paragraph (1); and
‘‘(B) any loan that is—
‘‘(i) secured by improved real estate
or a mobile home located in an area that
has been identified at the time of the origi-
nation of the loan by the Director of the
Federal Emergency Management Agency,
as an area of special flood hazards and in
which flood insurance is available under
the National Flood Insurance Act of 1968,
and
‘‘(ii) purchased by the Government
National Mortgage Association,
is covered for the term of the loan by flood in-
surance in the amount provided in paragraph
(1).
‘‘(3) FEDERAL AGENCY LENDERS.—A Federal
agency lender may not make, increase, extend, or
renew any loan secured by improved real estate or
a mobile home located or to be located in an area
that has been identified by the Director of the Fed-
eral Emergency Management Agency as an area
having special flood hazards and in which flood in-
surance has been made available under the National
Flood Insurance Act of 1968, unless the building or
mobile home and any personal property securing
such loan is covered for the term of the loan by flood
insurance in the amount provided in paragraph (1).
The relevant head of each Federal agency lender
shall issue any regulations necessary to carry out
this paragraph. Such regulations shall be consistent
with and substantially identical to the regulations is-
sued under paragraphs (1) and (2).
‘‘(4) GOVERNMENT-SPONSORED
ENTERPRISES
FOR HOUSING.—The Federal National Mortgage As-
sociation and the Federal Home Loan Mortgage
Corporation shall implement procedures reasonably
designed to ensure that any loan that is—
‘‘(A) secured by improved real estate or a
mobile home located in an area that has been
identified at the time of the origination of the
loan by the Director as an area of special flood
hazards and in which flood insurance is avail-
able under the National Flood Insurance Act of
1968, and
‘‘(B) purchased by either such entity,
is covered for the term of the loan by flood insur-
ance in the amount provided in paragraph (1).
‘‘(5) CONTESTED DETERMINATIONS.—If a bor-
rower under a loan disputes or challenges the deter-
mination of the lender that the improved real estate
or mobile home securing the loan is located in an
area of special flood hazards, the lender shall review
and consider any relevant information, as deter-
mined by the Director, submitted to the lender by
the borrower.
‘‘(6) APPLICABILITY.—Paragraphs (2) through
(4) shall apply only with respect to any loan made,
increased, extended, or renewed after the expiration
of the 1-year period beginning on the date of the en-
actment of the National Flood Insurance Reform
Act of 1994.’’.
SEC. 203. ESCROW OF FLOOD INSURANCE PAYMENTS.
Section 102 of the Flood Disaster Protection Act of
1973 (42 U.S.C. 4012a) is amended by adding at the end
the following new subsection:
‘‘(d) ESCROW OF FLOOD INSURANCE PAYMENTS.—
‘‘(1) PRIVATE LENDERS.—For loans secured by
residential real estate, each Federal entity for lend-
ing regulation (with respect to any loans of regu-
lated lending institutions) and the Secretary of
Housing and Urban Development (with respect to
any loans of other lending institutions), after con-
sultation and coordination with the Financial Insti-
tutions Examination Council, shall by regulation re-
quire that, if a lender or other servicer of the loan
requires the escrowing of taxes, insurance premiums,
fees, or any other charges for a loan secured by resi-
dential real estate or a mobile home, then all pre-
miums and fees for flood insurance under the Na-
tional Flood Insurance Act of 1968 for the residen-
tial real estate or mobile home shall be paid to the
lender or servicer of the loan. Premiums and fees
paid to the lender or servicer shall be paid in a man-
ner sufficient to make payments as due for the dura-
tion of the loan. Upon receipt of the premiums, the
lender or servicer of the loan shall deposit the pre-
miums in an escrow account on behalf of the bor-
rower. Upon receipt of a notice from the Director or
the provider of the insurance that insurance pre-
miums are due, the lender or servicer shall pay from
the escrow account to the provider of the insurance
the amount of insurance premiums owed.
‘‘(2) FEDERAL AGENCY LENDERS.—The appro-
priate head of each Federal agency lender shall by
regulation require and provide for escrow and pay-
ment of any flood insurance premiums and fees re-
lating to residential property securing loans made by
the Federal agency lender under the circumstances
and in the manner provided under paragraph (1).
Any regulations issued under this paragraph shall be
consistent with and substantially identical to the
regulations issued under paragraph (1).
‘‘(3) APPLICABILITY
OF
RESPA.—Escrow ac-
counts established pursuant to this subsection shall
be subject to the provisions of section 10 of the Real
Estate Settlement Procedures Act of 1974.
‘‘(4) APPLICABILITY.—This subsection shall
apply only with respect to any loan made, increased,
extended, or renewed after the expiration of the 1-
year period beginning on the date of the enactment
of the National Flood Insurance Reform Act of
1994.’’.
SEC. 204. PLACEMENT OF FLOOD INSURANCE BY LENDERS.
(a) ACTIONS REQUIRED BY LENDER.—Section 102
of the Flood Disaster Protection Act of 1973 (42 U.S.C.
4012a), as amended by the preceding provisions of this
Act, is further amended by adding at the end the following
new subsection:
‘‘(e) PLACEMENT OF FLOOD INSURANCE BY LEND-
ER.—
‘‘(1) NOTIFICATION TO BORROWER OF LACK OF
COVERAGE.—If, at any time during the term of a
loan secured by improved real estate or by a mobile
home located in an area that has been identified by
the Director as an area having special flood hazards
and in which flood insurance is available under the
National Flood Insurance Act of 1968, the lender or
servicer for the loan determines that the building or
mobile home and any personal property securing the
loan is covered by flood insurance in an amount less
than the amount required for the property pursuant
to subsection (b), the lender or servicer shall notify
the borrower under the loan that the borrower
should obtain, at the borrower’s expense, an amount
of flood insurance for the property that is not less
than the amount under subsection (b)(1), for the
term of the loan.
‘‘(2) PURCHASE OF COVERAGE ON BEHALF OF
BORROWER.—If the borrower fails to purchase such
flood insurance within 60 days after such notifica-
tion, the lender or servicer for the loan shall pur-
chase the insurance on behalf of the borrower and
may charge the borrower for the cost of premiums
and fees incurred by the lender or servicer for the
loan in purchasing the insurance.
‘‘(3) REVIEW OF DETERMINATION REGARDING
REQUIRED PURCHASE.—
‘‘(A) IN GENERAL.—A borrower may re-
quest that the Director review a determination
that the improved real estate or mobile home
securing the loan is located in an area of special
flood hazards. Not later than 45 days after the
Director receives the request, the Director shall
review the determination and provide the bor-
rower with a letter stating whether or not the
property is in a special flood hazards area. The
determination of the Director shall be final.
‘‘(B) EFFECT OF DETERMINATION.—Any
person to whom a borrower provides a letter is-
sued by the Director pursuant to subparagraph
(A), stating that the property of the borrower
is not in an area of special flood hazards, shall
have no obligation under this title to require the
purchase of flood insurance on the property
during the 1-year period beginning upon the
date that such letter is provided.
‘‘(4) APPLICABILITY.—This subsection shall
apply to all loans outstanding on or after the date
of enactment of the National Flood Insurance Re-
form Act of 1994.’’.
SEC. 205. PENALTIES FOR FAILURE TO REQUIRE FLOOD IN-
SURANCE OR NOTIFY.
Section 102 of the Flood Disaster Protection Act of
1973 (42 U.S.C. 4012a), as amended by the preceding
provisions of this Act, is further amended by adding at
the end the following new subsections:
‘‘(f) CIVIL MONETARY PENALTIES FOR FAILURE TO
REQUIRE FLOOD INSURANCE OR NOTIFY.—
‘‘(1) CIVIL
MONETARY
PENALTIES
AGAINST
LENDERS.—Any regulated or other lending institu-
tion that is found to have a pattern or practice of
committing violations under paragraph (2) shall be
assessed a civil penalty by the appropriate Federal
entity for lending regulation (with respect to regu-
lated lending institutions) or the Secretary of Hous-
ing and Urban Development (with respect to other
lending institutions) in the amount provided under
paragraph (5).
‘‘(2) LENDER VIOLATIONS.—The violations re-
ferred to in paragraph (1) shall be—
‘‘(A) making, increasing, extending, or re-
newing loans in violation of—
‘‘(i) the regulations issued pursuant to
subsection (b) of this section;
‘‘(ii) the escrow requirements under
subsection (d) of this section; or
‘‘(iii) the notice requirements under
section 1364 of the National Flood Insur-
ance Act of 1968; or
‘‘(B) failure to provide notice or purchase
flood insurance coverage in violation of sub-
section (e) of this section.
‘‘(3) CIVIL
MONETARY
PENALTIES
AGAINST
GSE’S.—If the Federal National Mortgage Associa-
tion or the Federal Home Loan Mortgage Corpora-
tion is found by the Director of the Office of Federal
Housing Enterprise Oversight of the Department of
Housing and Urban Development to have a pattern
or practice of purchasing loans in violation of the
procedures established pursuant to subsection (b)(4)
of this section, the Director of such Office shall as-
sess a civil penalty against such enterprise in the
amount provided under paragraph (5) of this sub-
section. For purposes of this subsection, the term
‘enterprise’ means the Federal National Mortgage
Association or the Federal Home Loan Mortgage
Corporation.
‘‘(4) NOTICE AND HEARING.—A penalty under
this subsection may be issued only after notice and
an opportunity for a hearing on the record.
‘‘(5) AMOUNT.—A civil monetary penalty under
this subsection may not exceed $350 for each viola-
tion under paragraph (2) or paragraph (3). The
total amount of penalties assessed under this sub-
section against any single regulated lending institu-
tion, other lending institution, or enterprise for any
calendar year may not exceed $100,000.
‘‘(6) LENDER
COMPLIANCE.—Notwithstanding
any State or local law, for purposes of this sub-
section, any lender that purchases flood insurance or
renews a contract for flood insurance on behalf of or
as an agent of a borrower of a loan for which flood
insurance is required shall be considered to have
complied with the regulations issued under sub-
section (b).
‘‘(7) EFFECT OF TRANSFER ON LIABILITY.—
Any sale or other transfer of a loan by a lender who
has committed a violation under paragraph (1), that
occurs subsequent to the violation, shall not affect
the liability of the transferring lender with respect to
any penalty under this subsection. A lender shall not
be liable for any violations relating to a loan com-
mitted by another lender who previously held the
loan.
‘‘(8) DEPOSIT OF PENALTIES.—Any penalties
collected under this subsection shall be paid into the
National Flood Mitigation Fund under section 1367
of the National Flood Insurance Act of 1968.
‘‘(9) ADDITIONAL
PENALTIES.—Any penalty
under this subsection shall be in addition to any civil
remedy or criminal penalty otherwise available.
‘‘(10) STATUTE OF LIMITATIONS.—No penalty
may be imposed under this subsection after the expi-
ration of the 5-year period beginning on the date of
the occurrence of the violation for which the penalty
is authorized under this subsection.
‘‘(g) OTHER ACTIONS
TO REMEDY PATTERN
OF
NONCOMPLIANCE.—
‘‘(1) AUTHORITY OF FEDERAL ENTITIES FOR
LENDING REGULATION.—The head of the applicable
Federal entity for lending regulation may require a
regulated lending institution to take such remedial
actions as are necessary to ensure that the regulated
lending institution complies with the requirements of
the national flood insurance program if the Federal
agency for lending regulation makes a determination
under paragraph (3) regarding the regulated lending
institution.
‘‘(2) AUTHORITY OF SECRETARY OF HUD.—The
Secretary of Housing and Urban Development may
require an other lending institution to take such re-
medial actions as are necessary to ensure that the
other lending institution complies with the require-
ments of the national flood insurance program if
such Secretary makes a determination under para-
graph (3) regarding the other lending institution.
‘‘(3) DETERMINATION OF VIOLATIONS.—A de-
termination under this paragraph shall be a finding
that—
‘‘(A) the regulated lending institution or
other lending institution, as the case may be,
has engaged in a pattern and practice of non-
compliance in violation of the regulations issued
pursuant to subsection (b), (d), or (e) of this
section or the notice requirements under section
1364 of the National Flood Insurance Act of
1968; and
‘‘(B) the regulated lending institution or
other lending institution, as the case may be,
has not demonstrated measurable improvement
in compliance despite the assessment of civil
monetary penalties under subsection (f).’’.
SEC. 206. ONGOING COMPLIANCE WITH FLOOD INSURANCE
PURCHASE REQUIREMENTS.
Section 102 of the Flood Disaster Protection Act of
1973 (42 U.S.C. 4012a), as amended by the preceding
provisions of this Act, is further amended by adding at
the end the following new subsection:
‘‘(h) NOTIFICATION OF FLOOD HAZARDS TO LOAN
TRANSFEREE.—
‘‘(1) IN GENERAL.—Except as provided in para-
graphs (2) through (5), before the sale or transfer
of any loan secured by improved real estate or a mo-
bile home, the seller or transferor of the loan shall
determine whether the property is in an area that
has been designated by the Director as an area hav-
ing special flood hazards. The seller or transferor
shall, before sale or transfer, notify the purchaser or
transferee and any servicer of the loan in writing re-
garding the results of the determination. A deter-
mination under this paragraph shall be evidenced
using the standard hazard determination form under
section 1365 of the National Flood Insurance Act of
1968.
‘‘(2) EXCEPTIONS.—For any loan secured by
improved real estate or a mobile home, a determina-
tion and notice under paragraph (1) shall not be re-
quired if, during the 5-year period ending on the
date of the sale or transfer of the loan—
‘‘(A) a determination and notice under
paragraph (1) has been made for the property
secured by the loan; or
‘‘(B)(i) the loan has been made, increased,
extended, or renewed; and
‘‘(ii) the lender making, increasing, extend-
ing, or renewing the loan was subject, at the
time of such transaction, to regulations issued
pursuant to paragraph (1), (2), or (3) of sub-
section (b).
‘‘(3) LOANS TRANSFERRED BY FDIC.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), for any loan secured by im-
proved real estate or a mobile home that is sold
or transferred by the Federal Deposit Insurance
Corporation acting in its corporate capacity or
in its capacity as conservator or receiver, the
purchaser or transferee of the loan shall deter-
mine whether the property is in an area that
has been designated by the Director as an area
having special flood hazards.
‘‘(B) EXCEPTIONS.—Such determination
and notice shall not be required for any loan—
‘‘(i) sold or transferred to an entity
under the control of the Federal Deposit
Insurance Corporation; or
‘‘(ii) for which the purchaser or trans-
feree exercises any available option to
transfer or put the loan back to the Fed-
eral Deposit Insurance Corporation.
‘‘(C) NOTICE TO DIRECTOR.—A purchaser
or transferee of a loan required to make a de-
termination and notification under subpara-
graph (A) shall notify the Director and any
servicer of the loan of the results of the deter-
mination (using the standard hazard determina-
tion form under section 1365 of the National
Flood Insurance Act of 1968) before the expira-
tion of the 90-day period beginning on the later
of (i) the purchase or transfer of the loan, or
(ii) the expiration of any option that the pur-
chaser or transferee may have to transfer or
put the loan back to the Federal Deposit Insur-
ance Corporation.
‘‘(4) LOANS TRANSFERRED BY RTC.—
‘‘(A) IN GENERAL.—For any loan secured
by improved real estate or a mobile home that
is sold or transferred by the Resolution Trust
Corporation acting in its corporate capacity or
in its capacity as a conservator or receiver, the
purchaser or transferee of the loan shall deter-
mine whether the property is in an area that
has been designated by the Director as an area
having special flood hazards if—
‘‘(i) the Resolution Trust Corporation
acquires the loan after the date of the ef-
fectiveness of this subsection and sells or
transfers the loan before the expiration of
the 12-month period beginning on such ef-
fective date; or
‘‘(ii) the Corporation holds the loan
on the date of the effectiveness of this sub-
section and sells or transfers the loan be-
fore the expiration of the 6-month period
beginning on such effective date.
‘‘(B) NOTICE TO DIRECTOR.—A purchaser
or transferee of a loan required to make a de-
termination and notification under subpara-
graph (A) shall notify the Director and any
servicer of the loan of the results of the deter-
mination (using the standard hazard determina-
tion form under section 1365 of the National
Flood Insurance Act of 1968) before the expira-
tion of the 90-day period beginning upon the
purchase or transfer of the loan.
‘‘(5) LOANS TRANSFERRED BY NCUA.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (C), for any loan secured by im-
proved real estate or a mobile home that is sold
or transferred by the National Credit Union
Administration acting in its corporate capacity
or in its capacity as a conservator or liquidating
agent, the purchaser or transferee of the loan
shall determine whether the property is in an