EnvironmentalIntermediateAlaska Exam

A property in Anchorage is located in a FEMA-designated Special Flood Hazard Area (SFHA). The owner has a conventional mortgage. Flood insurance requirements are:

AOptional — FEMA recommends but does not require it
BMandatory for federally backed mortgage loans on properties in SFHAsCorrect
CRequired only for commercial properties in SFHAs
DRequired only if the property has experienced prior flooding, in general

Why Mandatory for federally backed mortgage loans on properties in SFHAs Is Correct

Answer B: Mandatory for federally backed mortgage loans on properties in SFHAs

The National Flood Insurance Program (NFIP) requires mandatory flood insurance purchase for federally backed mortgage loans (FHA, VA, or conventional loans sold to Fannie/Freddie) on properties in designated Special Flood Hazard Areas. This is a federal requirement, not optional.

Exam Tip: Environmental

Environmental questions test knowledge of hazards like asbestos, lead-based paint, radon, and mold. Know the disclosure requirements and when a professional inspection is required. CERCLA liability is strict, joint, and several.

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