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Does the National Flood Insurance Act (Act) apply to loans that are being restructured or modified?

It depends.

If the loan being restructured or modified meets the definition of a "designated loan," the Act would apply to that loan. A designated loan is a loan secured by a building or mobile home that is located or is to be located in a Special Flood Hazard Area (SFHA) in which flood insurance is available under the Act. Additional flood insurance may be required if the lender increases the amount of the loan.

Refer to 42 USC 50 "National Flood Insurance Act."

Last Reviewed: April 2021

Please note: The terms "bank" and "banks" used in these answers generally refer to national banks, federal savings associations, and federal branches or agencies of foreign banking organizations that are regulated by the Office of the Comptroller of the Currency (OCC). Find out if the OCC regulates your bank. Information provided on should not be construed as legal advice or a legal opinion of the OCC.

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