Lender Placed Flood

The National Flood Insurance Reform Act of 1994 was passed into law on September 23, 1994. As a result, all mortgage lenders now have a set period of time in which to implement compliance procedures that cover obtaining guaranteed flood zone certifications for every new loans filed, flood zone certifications for any loans that may enter a Special Flood Hazard Area (SHFA) during the life of the loan and adequate flood insurance for any property located in a SFHA. 

Mortgage lenders will be subject to regular audits by Fannie Mae and Freddie Mac. These audits could result in monetary penalties, if noncompliance exists. Loans sold on the secondary market now require the seller to provide flood zone determination with each loan sold; monetary penalties could result if noncompliance exists.

Mortgage lenders must prepare for what lies ahead. In consideration of this, OSC is proud to offer a unique service ranging from obtaining flood zone determinations to placing necessary flood insurance policies. OSC will work with the lender to fully comply with the Federal Emergency Management Agency (FEMA) and the National Flood Insurance Program (NFIP).

MORTGAGE OUTSOURCING SERVICES

OSC's TC system tracks the insurance status on your loan portfolio and notifies borrowers of any exposure or deficiency. The TC system can help reduce the number of false placed policies and is designed to reduce the cost of administration generally associated with managing lender portfolios.