Federal flood insurance law and federal regulators’ implementing rules are the topic of revised questions and answers (Q&As) released late Wednesday by federal financial institution regulators and the Farm Credit Administration (FCA).
According to the agencies (which included the three banking agencies and the National Credit Union Administration (NCUA)), the Q&As replace those originally published by them in 2009 and 2011 and consolidate Q&As proposed in 2020 and last year. The revised Q&As reflect significant changes to the flood insurance requirements made by federal law in recent years, according to the agencies.
“The Q&As cover a broad range of technical flood insurance topics, including the escrow of flood insurance premiums, the detached structure exemption to the flood insurance purchase requirement, force placement procedures, and private flood insurance,” the NCUA said in its press release. It added that the agencies reorganized the Q&As by topic to make it easier for users to find and review information related to flood insurance.
In a financial institution letter (FIL), the Federal Deposit Insurance Corp. (FDIC) said the agencies issued 144 new and updated questions and answers on flood insurance to reflect significant legislative changes to the flood insurance requirements made by the Biggert–Waters Flood Insurance Reform Act of 2012 and the Homeowner Flood Insurance Affordability Act of 2014.