Loans in Areas Having Special Flood Hazards
§ 760.10 Notice of servicer’s identity.
When a credit union makes, increases, extends, renews, sells, or transfers a loan secured by a building or mobile home located in a special flood hazard area, it must notify the insurance provider, in writing, who the servicer is. This applies even if the credit union itself serves as the servicer. The compliance burden here is minimal, since the credit union would typically be dealing with the insurance provider.
The credit union must also notify the insurance provider of any later change in the servicer of a loan within 60 days after the effective date.
The merger or consolidation of a servicing credit union is treated as a change in servicer if it is not the surviving credit union. See the regulation for details.