Citing challenges due to the COVID-19 pandemic, NCUA and four other regulatory agencies on Tuesday extended the comment period of a proposal to revise an interagency Q&A on flood insurance.
The NCUA, OCC, Federal Reserve, FDIC and FCA first published a notice in the Federal Register at the end of June seeking comments due Sept. 4 on a proposal to reorganize, revise and expand the Interagency Questions and Answers Regarding Flood Insurance. The agencies have now extended that comment period until Nov. 3.
“This action will allow interested parties additional time to analyze the proposal and prepare and submit comments,” the notice stated.
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 an NCUA press release announcing the original call for comments on June 26.
The agencies 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.
The proposal incorporates new Q&As 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 current notice can be accessed by clicking here.