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The NCUA Board released two proposed rules Thursday that would implement 2014 changes to flood insurance measures affected by the Biggert-Waters Flood Insurance Act and make updates and technical revisions to current rules on corporate credit unions.

Each proposal, to be published in the Federal Register, will be out for a 60-day comment period.

Flood insurance
The board issued an interagency proposed rule that would implement 2014 amendments to flood insurance provisions affected by the 2012 Biggert-Waters Flood Insurance Act. A key provision of the proposal would apply the Biggert-Waters act requirement on escrows of premiums and fees for flood insurance to the origination, refinance, increase, extension or renewal of a loan on or after Jan. 1, 2016.

Additional exceptions are provided, and lenders would be required to give borrowers an option to escrow flood insurance premiums and fees for loans outstanding as of Jan. 1, 2016 – in other words, allow borrowers to seek escrows for loans and transactions occurring before that date.

Corporate credit unions
NCUA is proposing updates and technical changes to its rules on corporate credit unions; the rules haven't been revised since 2011. While some of the changes relate to corporates' capital requirements, Scott Hunt, director of the NCUA Office of National Examinations and Supervision, assured NCUA Chairman Debbie Matz that they do not in any weaken current capital requirements for corporates.

NAFCU is preparing Regulatory Alerts for members on Thursday's proposed rule.