AWACSMortgage compliance intelligence from Flightline

FHA · Mortgagee Letter ML 2024-20 · Published

Adoption of FFRMS for Minimum Property Standards in Special Flood Hazard Areas

Superseded by ML 2025-17 (Jun 27, 2025): ML 2025-17 rescinds this letter, so its requirements no longer apply. FHA has adopted the Federal Flood Risk Management Standard for Minimum Property Standards in Special Flood Hazard Areas.

Superseded by ML 2025-17 ↗ (opens in a new tab) (). Check the later announcement before acting on this one.

InformationalEffective Jan 1, 2025Checks passed· adjusted automaticallyRead the letter ↗ (opens in a new tab)

Loan impact

From the letter text · needs review

Applies to: FHA Title II Single Family forward and Home Equity Conversion Mortgage (HECM) new construction properties located in Special Flood Hazard Areas.

Addressed to
All FHA-Approved Mortgagees
Investor
FHAFrom the publisher, not quoted from the text
Programs
FHAFrom the publisher, not quoted from the text
Affected areas
Eligibility; Flood insurance
Affected documents
Form HUD-92541, Builder's Certification of Plans, Specifications, and Site; FEMA Form FF-206-FY-22-152, FEMA NFIP Elevation Certificate
Effective
Jan 1, 2025
Applicability confidence
Needs review: some rows could not be matched to a quote from the source
Supporting quotes from the letter
  • affected areas“This Mortgagee Letter (ML) updates New Construction property elevation requirements in SFHAs.”
  • affected documents“The building permit application submission date, or its equivalent date, will be required on form HUD-92541, Builder’s Certification of Plans, Specifications, and Site.”
  • affected documents“The Mortgagee must ensure that Flood Insurance is obtained when a FEMA NFIP Elevation Certificate (FEMA Form FF-206-FY-22-152) documents that the Property remains located within an SFHA.”

What changed

From the letter text · Section II.A.1.b.iv(A)(1)(b)
RequirementPreviouslyNow
New Construction elevation in Special Flood Hazard AreasTightenedPreviously: The lowest floor of the residential building, including the basement, and all related Structures or equipment essential to the Property Value are built at or above the 100-year flood elevation in compliance with the NFIP criteria.The lowest floor of the property improvements, including the basement and other permanent enclosures, and all related Structures or equipment essential to the Property Value must be at least two feet above the FEMA-determined Base Flood Elevation (BFE) for building permit application dates on or after January 1, 2025.
Building permit application submission date reporting on Form HUD-92541NewNew requirementThe building permit application submission date, or its equivalent date, is required to be reported on form HUD-92541, Builder's Certification of Plans, Specifications, and Site.
Flood elevation standards for Manufactured HousingClarifiedNot statedFlood elevation standards for Manufactured Housing remain unchanged.

What to do

AWACS interpretation · not source language

What to review: No longer in effect: follow ML 2025-17 (Jun 27, 2025) instead, and retire any procedure built only for this document.

Source and record

Version 1 · archived

Checks

  • Source verified: Passed

    The document ID, link and publication date match the official source.

  • Quotes match the source: Passed, adjusted automatically

    Every quoted passage appears word for word in the official document.

    • A detail the source does not support was removed or adjusted

  • Requirements backed by the source: Passed, adjusted automatically

    Anything marked required is backed by the requirement language and dates in the source.

    • A detail the source does not support was removed or adjusted

  • In scope: Passed

    The document is about residential mortgage lending.

  • Format and labels: Passed, adjusted automatically

    The record follows the AWACS format and uses its standard labels.

    • A detail the source does not support was removed or adjusted