An updated list of questions and answers aimed at providing insight to changes to flood insurance requirements under new rules regarding loans in special flood hazard areas were released for comment Friday by federal banking and credit union regulators, the first proposed changes to the list in nearly 10 years.
The agencies also noted that they plan to propose new questions and answers at a later date on the private flood insurance requirements implemented by their February 2019 final rule.
The three federal banking agencies, the National Credit Union Administration (NCUA) and the Farm Credit Administration (which regulates and examines banks, associations, and related entities of the Farm Credit System (FCS)) in a joint release said the Interagency Questions and Answers provide information addressing technical flood insurance-related compliance issues. The list of Q&As were last updated in 2011, the agencies said.
The proposed updated list, the agencies said, addresses several issues including: The escrow of flood insurance premiums; the detached structure exemption to the mandatory purchase of flood insurance requirement; and force-placement procedures.
According to the agencies, the proposed list also revises Q&As from the existing roster to improve clarity and reorganize by topic. The agencies said that would “make it easier for users to find and review information related to technical flood insurance topics” and help reduce compliance burden.
The release noted that the changes in flood insurance regulations were made in 2015 to implement provisions of the Biggert-Waters Flood Insurance Reform Act of 2012 and the Homeowner Flood Insurance Affordability Act of 2014.
A 60-day comment period, ending on Sept. 4, has been issued with the proposed revisions.
Agencies Release Proposed Revisions to Interagency Questions and Answers Regarding Flood Insurance