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The Flood Disaster Protection Act of 1973 mandated flood insurance coverage for many properties. For the first time, federally regulated lending institutions could not make, increase, extend, or renew any loan secured by improved real property located in an SFHA in a participating community unless the secured building and any personal property securing the loan were covered for the life of the loan by a flood insurance policy. This measure was necessary because, after major flooding disasters, it became evident that relatively few individuals in communities who sustained flood damage had purchased flood insurance.  The National Flood Insurance Reform Act of 1994 (the 1994 Reform Act) imposed significant new obligations on lenders for the receipt of disaster assistance.  The 1994 Reform Act amended the previous law to strength compliance and ensures that flood insurance is purchased and maintained for the term of the loan.

Although the intent of the law is to require borrowers to purchase flood insurance, the requirements are directed to federally regulated and federally insured lenders and to secondary-market entities involved in mortgage loan transactions.

American Flood Determinations LLC provides fast and accurate Standard Flood Hazard Determination Forms. 
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