Flood Insurance Essentials
Flood Insurance rules have changed continuously over the past years.
- On July 6, 2012 Congress passed the Biggert-Waters Flood Insurance Reform Act (Biggert-Waters).
- On March 23, 2014 Congress passed the Homeowner Flood Insurance Affordability Act (Affordability Act). The Affordability Act revised certain sections of Biggert-Waters, eliminated or delayed other sections and created new rules.
- In June 2015, the Board of Governors of the Federal Reserve System, the Farm Credit Administration, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency (jointly, the agencies) released final rules implementing most of the provisions of both of the above laws.
- In January 2019, the agencies published final rules implementing the requirements for the mandatory purchase of private flood insurance.
- During the Spring of 2021, the Federal Emergency Management Agency (FEMA) revised flood insurance declaration page to, among other items, remove the flood zone; which invalidates Flood Insurance FAQs that require the lender to compare the flood zone on the policy to the zone on the Standard Flood Hazard Determination form.
- On September 30, 2021, FEMA released the revised Standard Flood Hazard Determination Form (SFHDF). The previous version expired on October 31, 2018.
- On May 11, 2022, the agencies issued revised questions and answers (Q & As) regarding federal flood insurance law and the agencies’ implementing regulations.
What You’ll Learn
- When flood insurance is required, including situations that result in an increase, renewal, or an extension
- How to determine the accurate amount of required insurance the borrower must purchase
- What the purchase requirements are when multiple buildings are located on a property in a special flood hazard area
- The final requirements for the mandatory acceptance of private flood insurance
- The detached structure exemption and how to utilize it
- The requirement to escrow flood insurance premiums and the exemptions allowed from the escrow requirements
- The rules for force-placing flood insurance
- Whether increasing a loan balance due to force-placing flood insurance requires an escrow account to be established
- What steps should be taken if a flood hazard determination does not mirror the special flood hazard area dictated by the insurance company
- How a financial institution should monitor those loans designated to be in a special flood hazard area
Who Should Attend
The program is designed for compliance officers, operations personnel, mortgage loan officers, loan originators and others involved in obtaining and maintaining flood insurance on mortgage loans.
Kimberly Boatwright is EVP and Director of Risk and Compliance at Compliance Resource, LLC, and has more than two decades of experience working in the financial services industry. Ms. Boatwright is a well-regarded financial industry risk and compliance professional with a strong background in program development and implementation. She is a thought leader who specializes in Fair Lending, Anti-Money Laundering, OFAC, and consumer compliance. During her career, she has worked for and consulted with all types of financial institutions helping to establish and evolve compliance and risk programs. She is a frequent public speaker, trainer, and author on compliance and risk management topics. Boatwright is a Certified Regulatory Compliance Manager and a Certified Anti-Money Laundering Specialist.
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