Pennymac would like to remind lenders of the requirements for properties located within a Coastal Barrier Resource System (CBRS) or Otherwise Protected Areas (OPA).
Identifying CBRS or OPA
- Lenders are expected to have processes in place to identify and report when a property is located within a CBRS or OPA and to comply with the respective requirements.
- The FEMA Standard Flood Hazard Determination Form (SFHDF) identifies if a property is located within a CBRS or OPA. Note: the FEMA form uses the term CBRA instead of CBRS.
The appraiser is expected to report adverse site conditions, zoning, and additional information within the report to assist in identifying a property is located within a CBRS or OPA.
Fannie Mae:
- Flood insurance is mandatory for all loans secured by properties in a CBRS or OPA, regardless of the Special Flood Hazard Area (SFHA) determination. This policy can be obtained from the National Flood Insurance Program (NFIP) or a private insurer.
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If the property is in a CBRS or OPA and the community does not participate in the NFIP, the loan is only eligible if the property is not in an SFHA.
Refer to the Fannie Mae Selling Guide for complete requirements.
AUS Jumbo: Properties located in a CBRS or OPA are eligible for financing. Follow the AUS utilized (DU or LPA) to determine Flood Insurance requirements.
Please contact your Sales Representative with any questions.