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Code of Federal Regulations (Last Updated: July 5, 2024) |
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Title 12 - Banks and Banking |
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Chapter III - Federal Deposit Insurance Corporation |
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SubChapter B - Regulations and Statements of General Policy |
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Part 391 - Former Office of Thrift Supervision Regulations |
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Subpart D - Loans in Areas Having Special Flood Hazards |
§ 391.37 - Determination fees.
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(a)
General. Notwithstanding any Federal or State law other than the Flood Disaster Protection Act of 1973, as amended (42 U.S.C. 4001-4129), any State savings association, or a servicer acting on behalf of the State savings association, may charge a reasonable fee for determining whether the building or mobile home securing the loan is located or will be located in a special flood hazard area. A determination fee may also include, but is not limited to, a fee for life-of-loan monitoring.(b)
Borrower fee. The determination fee authorized by paragraph (a) of this section may be charged to the borrower if the determination:(1) Is made in connection with a making, increasing, extending, or renewing
of the loan that is initiated by the borrower; (2) Reflects the Director of FEMA's revision or updating of floodplain areas or flood-risk zones;
(3) Reflects the Director of FEMA's publication of a notice or compendium that:
(i) Affects the area in which the building or mobile home securing the loan is located; or
(ii) By determination of the Director of FEMA, may reasonably require a determination whether the building or mobile home securing the loan is located in a special flood hazard area; or
(4) Results in the purchase of flood insurance coverage by the lender or its servicer on behalf of the borrower under § 391.36.
(c)
Purchaser or transferee fee. The determination fee authorized by paragraph (a) of this section may be charged to the purchaser or transferee of a loan in the case of the sale or transfer of the loan.Effective Date Note: At 79 FR 75746, Dec. 19, 2014, § 391.37 was removed and reserved, effective Jan. 20, 2015.