The flood insurance rules state that any time an institution makes, increases, renews or extends a loan secured by property located in a Special Flood Hazard Area (SFHA), it must ensure adequate flood insurance is in place. Failing to identify such MIRE events can lead to violations and even civil money penalties. We often get questions about loan modifications and whether they are considered to be MIRE events. The answer is, it depends. Essentially, you need to look at what change(s) you are making and determine whether it falls within the MIRE parameters.
Kevin explains more in the video.
Published 2026/03/31