With an expansion of the flood plain in several California counties taking effect next month, lenders are wrestling with the question of when to notify borrowers.

On July 6 the Federal Emergency Management Agency will remap its flood zones in California, adding 250,000 properties. That same day, flood insurance rates are scheduled to double. The owners will be required by law to buy flood insurance, but mortgage lenders are the ones ultimately on the hook.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.