October 25, 2016

Proposal would have lenders accept private flood insurance

The joint agency proposal on flood insurance slated for action in Thursday's NCUA Board meeting would require lenders to accept private flood insurance on a discretionary basis and subject to certain restrictions.

The NCUA Board is expected to vote to issue this proposal during Thursday's open board meeting, with comments due 60 days following publication in the Federal Register.

The proposal would fulfill the private flood insurance provisions of the Biggert-Waters Flood Insurance Reform Act of 2012. It is being released jointly by the NCUA, the Office of the Comptroller of the Currency, the Federal Reserve, the FDIC and the Farm Credit Administration.

NAFCU will review the proposal for its impact on credit unions.

Last summer, the NCUA Board also approved an interagency final rule requiring the escrow of flood insurance payments on residential improved real estate securing a loan.