and Farm Credit Administration (the Agencies) issued an Interagency Statement regarding the impact of the
Bigger-Waters Flood Insurance Reform Act.
The statement provides guidance to inform financial institutions about revisions to the Flood Disaster Protection Act of 1973, which was amended by the Biggert-Waters Flood Insurance Reform Act of 2012. The interagency guidance also provides information regarding the impact of the Act on the Agencies’ proposed Interagency Questions & Answers.
Effective immediately are amendments to the force placement provisions, including clarification that a lender or servicer may charge a borrower premiums or fees incurred for coverage beginning on the date on which flood insurance coverage lapsed or did not provide sufficient coverage amount. There is also a provision requiring cancellation and refunding of force placed premium within 30 days of receiving confirmation of a borrower’s existing adequate flood insurance coverage.
To read the full Statement, click on the link below: