Newsroom
June 23, 2015
Agencies issue joint final rule on flood insurance
Five federal regulators released a joint final rule yesterday that modifies regulations that apply to loans secured by properties located in special flood hazard areas.
NCUA's board gave its approval to the interagency final rule last Thursday. The final rule requires the escrow of flood insurance payments on residential improved real estate securing a loan.
The final rule has provisions that take effect this Oct. 1 and on Jan. 1, 2016. The final rule implements 2014 revisions to the 2012 Biggert-Waters flood insurance reform law.
While requiring escrows, the final rule also incorporates an exemption from the mandatory flood insurance purchase requirement for small lenders, defined as lenders under $1 billion, and certain detached structures. It also addresses forced- placed flood insurance. The private flood insurance provisions in Biggert-Waters will be addressed in a future rulemaking.
NAFCU shared concerns with NCUA over the costs of the escrow provision but welcomes the rule's clear exemption for lenders with less than $1 billion in assets.
NCUA's board gave its approval to the interagency final rule last Thursday. The final rule requires the escrow of flood insurance payments on residential improved real estate securing a loan.
The final rule has provisions that take effect this Oct. 1 and on Jan. 1, 2016. The final rule implements 2014 revisions to the 2012 Biggert-Waters flood insurance reform law.
While requiring escrows, the final rule also incorporates an exemption from the mandatory flood insurance purchase requirement for small lenders, defined as lenders under $1 billion, and certain detached structures. It also addresses forced- placed flood insurance. The private flood insurance provisions in Biggert-Waters will be addressed in a future rulemaking.
NAFCU shared concerns with NCUA over the costs of the escrow provision but welcomes the rule's clear exemption for lenders with less than $1 billion in assets.
Share This
Related Resources
CFPB Orders Bank of America to Pay $12 million
Examination & Enforcement Home-Secured Lending
Blog Post
Adverse Action: Withdrawal, Counteroffer, Notice of Incompleteness
Home-Secured Lending
Blog Post
HELOC Application and Account Opening Disclosures
Home-Secured Lending
Blog Post
Flipped Houses and Second Appraisals
Home-Secured Lending
Blog Post
Get daily updates.
Subscribe to NAFCU today.