www.hudclips.org 


U. S. Department of Housing and Urban Development
Washington, D.C. 20410-8000

April 15, 1996
 
MORTGAGEE LETTER 96-17
 
TO:  ALL APPROVED MORTGAGEES
 
SUBJECT:  Single Family Loan Production - Implementation of FEMA Form 81-93,
          Standard Flood Hazard Determination
 
     Last year the Federal Emergency Management Agency (FEMA) issued FEMA Form
81-93, Standard Flood Hazard Determination (attached) as required by the
National Flood Insurance Reform Act of 1994 (NFIRA).  The NFIRA also required
certain Federal regulators of lending institutions, not including the
Department, to issue rules requiring use of the FEMA
form by all lending institutions that are subject to their regulation.  A
joint final rule for this purpose took effect on January 2, 1996.
 
     Although NFIRA itself and the joint final rule do not require the FEMA
form to be used for all FHA-insured mortgages, the Department will require
use of this form on all FHA-insured single family mortgages as part of an
agreement with FEMA.  Therefore, as of 60 days from the date of this mortgagee
letter, all FHA-approved lenders are required to include a
completed copy of this form in the lender's file.
 
     For guidance on the Department's requirements concerning Flood Insurance
please review the following HUD publications:
 
    Mortgagee Letter 90-16, Flood Insurance Requirements for FHA-insured Loans
    Mortgagee Letter 95-1, Revised Single Family Flood Insurance Requirements
    HUD Handbook 4000.4, REV-1, CHG-1, Single Family Direct Endorsement
        Program, Chapter 3
    HUD Handbook 4150.1, REV-1, Valuation Analysis for Home Mortgage
        Insurance, Chapter 4
                                   - 2 -
 
     If you have any questions concerning this mortgagee letter, please
contact your local HUD office.
 
Sincerely yours,
 

Nicolas P. Retsinas
Assistant Secretary for Housing-
Federal Housing Commissioner
 
Attachments