Agencies Propose New, Revised Questions and Answers on Flood Insurance

The banking agencies today released several new interagency questions and answers on flood insurance compliance, as well as a major reorganization of and certain revisions to pre-existing Q&As. The proposed changes are intended to address statutory changes, regulatory modernization and industry requests for clarity, the agencies said.

The proposed new Q&As would cover escrow of flood insurance premiums (and the small lender exemption), lender placement of flood insurance, the detached structures exemption, private flood insurance, borrower disputes, flood insurance for units in cooperative buildings and lender participation in a multi-tranche credit facility.

Comments on the proposed additions to the interagency Q&As are due 60 days after they are published in the Federal Register.