My Loan Was Sold ---Can New Lender Change Terms?

No the terms of your loan can not change from what was on the original doents which you signed at closing. They are requiring Flood insurance because FEMA has changed the flood maps since you closed on your loan. If the flood maps have changed then the lender, regardless of who they are can require you to have flood insurance. If you do not get the coverage on your own, the lender will order it and bill you for the premium....I can guarantee you that if the lenders orders it, the premium will be at least double what you would pay if you got it yourself. The lender will not shop for the lowest rate.