Can a mortgage lender buy out you loan and then tell you that original insurance is not adequate?

I purchased a home through a local lender 2 months ago and was required to have flood insurance as I live between two ponds. One day after I made my first payment to the local company they sold my loan to pennymac. After I made the first payment to pennymac i received a letter in the mail stating that the coverage I had was not adequate for them and I am required to purchase a more expensive plan. The plan I originally needed was almost a deal breaker because it increased my mortgage by 150 dollars a month and now they are telling me I need to spend more? It seems like they should have had access to that information before they bought the loan. Can they do this?

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