Federal Agencies Issue Flood Insurance Rule

Five federal regulatory agencies approved a joint final rule modifying regulations that apply to loans secured by properties located in special flood hazard areas.

The rule, which was approved by 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, implements provisions of the Homeowner Flood Insurance Affordability Act of 2014 that relate to the escrowing of flood insurance payments. The final rule also implements provisions in the Biggert-Waters Flood Insurance Reform Act of 2012 that relate to the force placement of flood insurance.

See: FRB Press Release; FDIC Press Release; FCA Press Release; OCC Press Release.