In a flood determination, what form must the credit union use?

In a flood determination, the credit union is required to use the Standard Flood Hazard Determination Form. This form is crucial because it helps determine if a property is located in a special flood hazard area (SFHA) as designated by FEMA (Federal Emergency Management Agency). This information is vital for both the lender and the borrower, as properties in SFHAs may require flood insurance as part of their mortgage agreements.

The use of this specific form ensures compliance with federal regulations, particularly the Flood Disaster Protection Act, which mandates that lenders assess flood risks for properties involved in federally related loans. By completing the Standard Flood Hazard Determination Form, the credit union obtains a reliable assessment of flood zone status, which is essential for making informed lending decisions and managing risk effectively.

Other forms listed do not fulfill this specific requirement and serve different purposes within the mortgage process. For instance, the standard mortgage form is used for documenting the terms of the loan itself, while the standard loan application form collects borrower information and financial details. The standard insurance policy form pertains to the insurance coverage for the property rather than flood risk assessment. Thus, the Standard Flood Hazard Determination Form is essential for ensuring that flood-related risks are properly identified and addressed.