The Biggert-Waters Flood Insurance Reform Act of 2012 (the Act) significantly revised Federal flood insurance statutes (See our April 8, 2013 memorandum on the firm website at http://www.bmandg.com/). Certain provisions of the Act require the following Federal regulatory agencies to issue implementing regulations and conforming revisions to their current flood insurance regulations. In compliance with the Act, in the October 30, 2013, issue of the Federal Register (78 FR 65108), the Office of the Comptroller of the Currency (OCC), Board of Governors of the Federal Reserve System (Board), Federal Deposit Insurance Corporation (FDIC), the Farm Credit Administration (FCA), and the National Credit Union Administration (NCUA) (collectively, the Agencies) proposed to amend their regulations regarding loans in areas having special flood hazards to implement provisions of the Act. Specifically, the proposed rulemaking would establish requirements with respect to the escrow of flood insurance payments, the acceptance of private flood insurance coverage, and the force-placement of flood insurance. The proposed rulemaking also would clarify the Agencies’ flood insurance regulations with respect to other amendments made by the Act and make technical corrections. Furthermore, the OCC and the FDIC are proposing to integrate their flood insurance regulations for national banks and Federal savings associations and for State non-member banks and State savings associations, respectively. The Agencies’ proposed rulemaking would implement only certain provisions of the Act over which the Agencies have jurisdiction. Accordingly, lenders should consult the Act for further information about revisions to the flood insurance statutes that will not be implemented through this rulemaking. The Act is contained in Division F., Title II of Public Law 112-141. Comments on this proposed rulemaking must be received on or before December 10, 2013, and be submitted in accordance with the instructions published with the proposed rulemaking. Download complete memorandum below
