Nationwide Mortgage Licensing System (NMLS) Practice Exam

Which agency is responsible for maintaining the national flood maps?

1. HUD

2. FEMA

3. FHA

4. VA

The correct answer is: FEMA

The agency responsible for maintaining the national flood maps is FEMA, the Federal Emergency Management Agency. FEMA plays a crucial role in disaster management and response, and part of its responsibilities includes mapping flood-prone areas across the United States. This mapping is essential for identifying risk zones that inform community planning, insurance requirements, and development regulations. The flood maps created and maintained by FEMA, known as Flood Insurance Rate Maps (FIRMs), help determine flood risk for properties and influence how insurance rates are set for flood insurance under the National Flood Insurance Program (NFIP). This mapping is updated periodically to reflect changes in the environment, land use, and flood data, ensuring that communities have the most current information regarding flood hazards. The other agencies listed have different functions: HUD (Department of Housing and Urban Development) focuses on housing and urban development, FHA (Federal Housing Administration) primarily insures loans and helps first-time homebuyers, and VA (Department of Veterans Affairs) offers various forms of support and benefits to veterans, including loan guarantees. Their roles do not include maintaining national flood maps like FEMA.