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The flood rules require that a bank provide the borrower a notice of special flood hazards and availability of federal disaster relief assistance within a “reasonable time” before consummation of the loan. What is considered a “reasonable” time by the regulators?

The flood rules require that a bank provide the borrower a notice of special flood hazards and availability of federal disaster relief assistance within a “reasonable time” before consummation of the loan when a property is in a designated flood zone requiring flood insurance. What is considered a “reasonable” time by the regulators?

The agencies noted in the flood insurance compliance exam manuals that ten days is generally considered a “reasonable” time interval for provision of the notice before consummation. (October 2020)

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