Which law requires a borrower to escrow for flood insurance if they are already escrowing for taxes and insurance?

The National Flood Insurance Program (NFIP) mandates that if a borrower is required to obtain flood insurance due to the property's location in a designated flood zone, and they already have an escrow account set up for other expenses like taxes and homeowners insurance, they must also escrow for flood insurance. This law aims to ensure that property owners are adequately protected against flood risks and that insurance payments are made timely. By requiring the escrowing of flood insurance, the NFIP helps reduce the chances of borrowers falling behind on mandatory insurance payments, providing an additional layer of financial security and compliance for lenders and borrowers alike.

Other laws listed, such as the Secure and Fair Enforcement Act, Mortgage Disclosure Improvement Act, and MARS, do not specifically address the requirements for escrowing flood insurance in the context described. Their focus lies elsewhere, indicating that the NFIP is the most relevant regulation in this scenario.