NCUA and four other regulatory agencies are requesting comments on the revised Interagency Questions and Answers Regarding Flood Insurance. The interagency Q&A, which provides information addressing technical flood insurance-related compliance issues, was last updated in 2011.
The updates to the Q&A were made in light of changes to flood insurance requirements under the agencies’ joint rule regarding loans in special flood hazard areas, promulgated in 2015 to implement provisions of the Biggert-Waters Flood Insurance Reform Act of 2012 and the Homeowner Flood Insurance Affordability Act of 2014, according to a June 26 NCUA press release.
NCUA, along with the OCC, Federal Reserve, FDIC and the FCA are seeking comments on the amendments to the Q&A in an effort to help lenders meet their responsibilities under the federal flood insurance law and to increase public understanding of their flood insurance regulations.
According to the press release, the proposal incorporates new questions and answers in several areas, including:
- the escrow of flood insurance premiums;
- the detached structure exemption to the mandatory purchase of flood insurance requirement; and
- force-placement procedures.
The proposal also revises existing Q&As in an effort to improve clarity and reorganizes questions and answers by topic to make it easier for users to find and review information related to technical flood insurance topics.
The press release can be accessed on NCUA’s website.