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The federal financial regulators – including the NCUA – Friday proposed updated flood insurance Q&As intended to reduce lenders' compliance burden under federal flood insurance laws and are seeking public feedback on the revisions. The Q&As are related to the 2015 joint agency rule that modified regulations that apply to loans secured by properties located in special flood hazard areas.

The proposal adds news Q&As in several areas, including:

• the escrow of flood insurance premiums;
• the detached structure exemption to the mandatory purchase of flood insurance requirement; and
• force-placement procedures.

It also revises existing Q&As to improve clarity and reorganizes them by topic to make it easier for users to find and review information related to technical flood insurance topics.

The agencies also indicated they will propose additional Q&As at a later date for the interagency rule requiring mortgage lenders to accept both private and government-backed flood insurance policies.

The proposed Q&As will be open for a 60-day comment period once published in the Federal Register.