Flood Insurance: Diving Deep on Calculations and Timing Requirements
Flood compliance causes institutions to be assessed civil money penalties for violations of the Flood Disaster Protection Act (FDPA), even though the basic regulatory requirements have remained the same for a number of years. Bottom line, adequate flood insurance is required to be in place when a MIRE (Make, Increase, Renew, or Extent) event occurs and the structure securing the loan is located in a special flood hazard area.
And on top of that, if the borrowers drop their flood insurance, your institution must force-place flood insurance in a timely manner. It’s critical that your institution makes accurate calculations and monitors timing requirements to ensure compliance with this regulation!
The components of an effective flood compliance management program include timely ordering of the determination; proper calculation of the minimum flood insurance coverage; fulfilling notice requirements; and evaluating flood policies.
Join us as we discuss the requirements of the FDPA so that you can ensure there are no leaks in your institution’s flood compliance program!
