Federal banking agencies today reissued previously provided guidance on flood insurance requirements during a lapse in the National Flood Insurance Program. The announcements contain no changes from the guidance issued during prior government shutdowns.
Lenders may continue to make loans without flood insurance coverage during this time but must continue to make flood determinations; provide timely, complete and accurate notices to borrowers; and comply with other applicable parts of the flood insurance regulations, the agencies said. In addition, lenders should evaluate safety and soundness and legal risks and should prudently manage those risks during the lapse period.
The American Bankers Association has incorporated the reissued guidance into its updated staff analysis on preparing for an NFIP lapse.











