Links in “Flood Insurance”

ABA says what was a straightforward mandate on financial institutions to ensure that homes are covered by flood insurance has "devolved into an increasingly complex and inefficient compliance exercise." It calls for change. [1/22/16]

The FDIC has released guidance to aid institutions in areas of Texas affected by flooding and severe storms, encouraging institution’s to work with borrowers experiencing difficulties caused by extreme weather. This involves extending repayment terms, restructuring existing loans, and regulatory relief from certain filing and publishing requirements. [12/2/15]

With all the excitement surrounding the implementation of the TILA-RESPA Integrated Disclosure rule, some other significant compliance changes got pushed to the back seat. Among them are clarifications to the Final Flood Insurance Rule Amendments, which went into effect Oct. 1, 2015, the result of efforts from five federal regulatory agencies. Other amendments to the flood insurance rules come into play with the start of the new year. Let’s take a look at the major changes and how will they impact your financial institution. [10/17/15]

NCUA announced that is regional office staff is contacting credit unions in South Carolina that have been affected by flooding to offer assistance in maintaining or restoring operations. The Office of Small Credit Unions is prepared to provide urgent needs grants of up to $7,500 for low-income credit unions. [10/6/15]

New flood insurance rules that address force-placed insurance and an exemption for detached structures took effect on October 1, 2015, while provisions that require certain credit unions to escrow flood insurance premiums take effect 1/01/2016. Under the DOD’s revised Military Lending Rule, federal credit unions will be able to exclude one application fee in a rolling 12-month period from the military annual percentage rate (MAPR). Compliance with the new rule is voluntary beginning on Oct. 3, 2015 and is mandatory by Oct. 3 2016. [10/5/15]

The amount of vegetation destroyed by wildfires in eastern and central Washington has resulted in an increased flash flood risk, and residents within affected areas are being urged by the Federal Emergency Management Agency (FEMA) to obtain flood insurance in order to protect their homes from loss. [9/30/15]

Five of the federal banking regulatory agencies—FDIC, FRB, OCC, FCA, and NCUA—have recently issued a joint final flood insurance rule. The rule accomplished many things, including requiring escrowing of flood insurance payments from non-exempt loans, and requiring borrowers be given the option to escrow flood insurance premiums and fees. [6/25/15]

Five federal regulatory agencies announced approval of a joint final rule modifying regulations that apply to loans secured by properties located in flood hazard areas. The final rule implements provisions of the Homeowner Flood Insurance Affordability Act of 2014 (HFIAA). [6/23/15]

Five federal agencies, including the NCUA, have jointly issued a final rule that addresses flood insurance. While the rule changes are expansive, two key changes will require financial institutions with $1 billion or more in assets to escrow for flood insurance premiums and would exempt certain detached structures from the mandatory requirement to purchase flood insurance. The new provisions go into effect on January 1, 2016. [6/23/15]

Financial institutions with assets of less than $1 billion will be exempted from the escrow requirements of the recently finalized flood insurance rule. [6/23/15]