Notification of Change of Servicer of Loan Secured by Property Requiring Flood Insurance
November 4, 1997
Circular No. 10991

To All State Member Banks in the Second Federal Reserve District:

The National Flood Insurance Reform Act of 1994 requires federally regulated lending institutions and federal agency lenders to report changes of servicers of loans secured by property requiring flood insurance. Specifically, regulated lenders must notify the Director of the Federal Emergency Management Agency, or the Director's designee, of any changes in the servicer of the loan not later than 60 days after the effective date of such change. This requirement supplements the requirement that regulated lenders notify the Director or the Director's designee, in writing, of the servicer of the loan when the lender is making, increasing, extending, renewing, selling, or transferring a loan secured by a building or mobile home requiring flood insurance.

The Federal Emergency Management Agency is requesting that all notices be sent to the insurance carrier issuing the flood policy or the agent of record to endorse the flood policy to change the mortgagee or servicer.

In order to expedite processing, the following information should be submitted to the insurance company:

  • Borrower's Full Name
  • Flood Insurance Policy Number
  • Property Address (including city/state)
  • Name of Bank or Servicer Reporting the Change
  • Name/Telephone Number of Contact Person
  • Name and Address of New Mortgagee or Servicer
  • Name/Telephone Number of Contact Person