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.
Browsing: Lender-placed insurance
In response to a query by ABA staff, the federal banking agencies recently provided clarifications on whether a lender charging a customer for premiums and fees for force-placed flood insurance to a borrower’s loan balance constitutes a loan balance increase that would be a “triggering event” under the Flood Disaster Protection Act.
ABA in a letter last week urged regulators to issue guidance clarifying whether the advancement of a lender-placed flood insurance premium constitutes an “increase” to the designated loan, which is a statutory “tripwire” under the Flood Disaster Protection Act.
The FDIC today released an updated series of resource videos on flood insurance to help bank executives and compliance staff better understand federal flood insurance laws, regulations and compliance responsibilities.
The federal financial agencies today finalized a rule implementing the mandatory escrow and detached structure requirements in last year’s Homeowner Flood Insurance Affordability Act, which addressed affordability problems in the 2012 Biggert-Waters flood insurance reform law.
The most recent issue of the Federal Reserve publication Consumer Compliance Outlook features an article on lender-placed flood insurance.