Finance
A Texas lender requires flood insurance for a property in a Special Flood Hazard Area (SFHA). This is required by:
ATREC as part of the licensing requirements
BFederal law under the National Flood Insurance Act for federally backed loans in SFHAs✓ Correct
CTCEQ environmental regulations
DThe Texas Homeowners Association Act
Explanation
Federal law mandates that properties in SFHAs securing federally regulated or federally backed loans must maintain flood insurance through the National Flood Insurance Program (NFIP) or private flood insurance meeting federal standards.
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