What must the credit union retain concerning flood hazard determinations?

The requirement for credit unions to retain a copy of the flood hazard determination for the entire ownership period of the loan is grounded in regulatory compliance and risk management. This determination is crucial as it assesses the property's risk of flooding and dictates whether flood insurance is necessary for the borrower.

Retaining this information throughout the ownership period ensures that the credit union can demonstrate compliance with federal regulations, particularly as mandated by the National Flood Insurance Act. It helps the credit union monitor ongoing risk and uphold their lending standards related to properties located in identified flood zones.

While other options may be relevant in different contexts—such as retaining records related to insurance applications or past claims—they do not specifically address the need for ongoing risk assessment and compliance documentation linked to the flood hazard determination itself, which is essential for safeguarding the institution's interests and adhering to legal requirements.