Certified Floodplain Manager (CFM) Practice Exam 2025 – Complete Preparation Guide

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Question: 1 / 400

How were lenders impacted by the 1994 National Flood Insurance Reform Act?

They received subsidies

They were subject to fines if not compliant

The 1994 National Flood Insurance Reform Act required lenders to be compliant with certain flood insurance requirements for properties in flood-prone areas. This means that lenders were responsible for ensuring that property owners had the necessary flood insurance coverage. If they failed to comply, they could face fines for not following federal regulations. The other options, such as receiving subsidies or grants or providing digital data, were not direct impacts on lenders under this specific act.

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They were given grants

They were required to provide digital data

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