April 24, 2019

Fed to offer webinar on flood insurance rule

woman typing on computerAs part of an ongoing series of events focused on consumer compliance topics, the Federal Reserve is offering a webinar May 14 to explain the interagency flood insurance that requires mortgage lenders to accept both private and government-backed flood insurance policies.

The webinar is scheduled to begin at 2:00 p.m. Eastern; staff from the Federal Reserve, Farm Credit Administration, FDIC, NCUA and Office of the Comptroller of the Currency will participate in the webinar. Attendees may send questions by email ahead of the webinar; more information and registration is available here.

The presentation will include a question and answers segment, and review the following topics:

  • mandatory acceptance of private flood insurance;
  • mandatory acceptance of compliance aid statement;
  • discretionary acceptance of private flood insurance;
  • flood coverage provided by mutual aid societies; and
  • preparations to comply with the rule.

For more on the final rule read this February Compliance Blog Post by NAFCU Regulatory Compliance Counsel Reggie Watson. Watson outlined the implications and included a number of resources for credit unions to use to prepare for when the rule goes into effect on July 1.

NAFCU has pushed for improvements to the National Flood Insurance Program (NFIP), including allowing private policies to fulfill the federal flood insurance mandate, increases in coverage limits, capping premiums and rates, and updating federal flood mapping procedures. Congress is considering legislation to reauthorize and reform the program, which is currently set to expire May 31.