Yes, the flood determination should be made in your bank’s name. Under Regulation H, lenders are required to determine whether a building offered as collateral security for a loan requires flood insurance. Interagency guidance has clarified that purchasing a loan does not trigger this requirement. In addition, the standard flood hazard determination form (required by Regulation H) requires the lender’s name and identification number. The form does not require any information about subsequent purchasers of a designated loan, which further indicates that the flood determination should be made in the lender’s (not the purchaser’s) name.

For resources related to our guidance, please see:

• 12 CFR 339.6 (“An FDIC-supervised institution shall use the standard flood hazard determination form developed by the Administrator of FEMA when determining whether the building or mobile home offered as collateral security for a loan is or will be located in a special flood hazard area in which flood insurance is available under the Act.”)

• Standard Flood Hazard Determination Form (Requires the lender’s name and ID)

• Interagency Questions and Answers Regarding Flood Insurance, Question 3 (“A lender's purchase of a loan, secured by a building or mobile home located in an SFHA in which flood insurance is available under the Act, alone, is not an event that triggers the Regulation's requirements, such as making a new flood determination or requiring a borrower to purchase flood insurance. Requirements under the Regulation, generally, are triggered when a lender makes, increases, extends, or renews a designated loan. A lender's purchase of a loan does not fall within any of those categories.”)