With investors asking lenders to provide borrowers with more transparency on their loans up front, International Document Services is answering the call by preparing new disclosure docs that are specifically in line with investor demands. Mortgage document preparation company International Document Services is rolling out a flood insurance disclosure form through its document preparation program to help lenders comply with new flood insurance disclosure requirements. The disclosure is required for all lenders who sell to Franklin American Mortgage Co., Mortgage Services III and Wells Fargo (WFC), International Document Services said. The disclosure form, which is titled "Flood Insurance Coverage Subject to Change," is designed to make borrowers aware of the fact that mortgage servicers who may hold the loan in the future have a right to adjust the flood insurance coverage on their mortgages. International Document Services says investor Franklin American stipulated that the language will have to be added to all mortgages sold to the firm if the original applications are made on or after Dec. 1. Mortgage Services III and Wells Fargo expect the language to be included on all applications filed on or after Jan. 1, 2012. The language added to the flood insurance disclosure document is required for loans located in and outside of special flood zones, International Document Services said. Lenders had the option of including the new flood insurance requirement as an addendum to the notice of special flood hazard form or to the servicing disclosure statement notice, according to IDS. But IDS went another direction and decided to develop a separate disclosure firm since only three investors — Franklin American, Mortgage Services III and Wells Fargo — are currently requiring the new disclosure language. Write to Kerri Panchuk.