Federal Regulatory Agencies Request Comment on Proposed Flood Insurance Rule

Five federal regulatory agencies, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Farm Credit Administration, the National Credit Union Administration, and the Office of the Comptroller of the Currency, issued a joint notice of proposed rulemaking to amend the federal flood insurance regulations.

According to the press release, the proposed rule would "require regulated lending institutions to escrow premiums and fees for flood insurance for loans secured by residential improved real estate or mobile homes that are made, increased, extended or renewed on or after January 1, 2016, unless the regulated lending institution or a loan qualifies for a statutory exception." Comments are due 60 days after the rule is published in the Federal Register, which is expected shortly.