[Code of Federal Regulations]

[Title 12, Volume 6]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 12CFR614.4950]



[Page 144-145]

 

                       TITLE 12--BANKS AND BANKING

 

                 CHAPTER VI--FARM CREDIT ADMINISTRATION

 

PART 614_LOAN POLICIES AND OPERATIONS--Table of Contents

 

                 Subpart S_Flood Insurance Requirements

 

Sec. 614.4950  Determination fees.



    (a) General. Notwithstanding any Federal or State law other than the 

1973 Act, any System institution, or a servicer acting on behalf of the 

institution, may charge a reasonable fee for determining whether the 

building or mobile home securing the loan is located or will be located 

in a special flood hazard area. A determination fee may also include, 

but is not limited to, a fee for life-of-loan monitoring.

    (b) Borrower fee. The determination fee authorized by paragraph (a) 

of this



[[Page 145]]



section may be charged to the borrower if the determination:

    (1) Is made in connection with a making, increasing, extending, or 

renewing of the loan that is initiated by the borrower;

    (2) Reflects the Director of FEMA's revision or updating of 

floodplain areas or flood-risk zones;

    (3) Reflects the Director of FEMA's publication of a notice or 

compendium that:

    (i) Affects the area in which the building or mobile home securing 

the loan is located; or

    (ii) By determination of the Director of FEMA, may reasonably 

require a determination whether the building or mobile home securing the 

loan is located in a special flood hazard area; or

    (4) Results in the purchase of flood insurance coverage under Sec. 

614.4945.

    (c) Purchaser or transferee fee. The determination fee authorized by 

paragraph (a) of this section may be charged to the purchaser or 

transferee of a loan in the case of the sale or transfer of the loan.