WASHINGTON, Could 12 — The Federal Deposit Insurance coverage Company issued the next monetary establishment letter (No. FIL-20-2022):
The Federal Deposit Insurance coverage Company (FDIC), the Workplace of the Comptroller of the Foreign money (OCC), the Board of Governors of the Federal Reserve System (FRB), the Nationwide Credit score Union Administration (NCUA), and the Farm Credit score Administration (FCA) (collectively, the Businesses) are issuing the revised Interagency Questions and Solutions Concerning Flood Insurance coverage (Interagency Questions and Solutions). The Interagency Questions and Solutions deal with steadily requested questions in regards to the flood insurance coverage necessities of the Nationwide Flood Insurance coverage Act of 1968, as amended, and its accompanying regulation. These Interagency Questions and Solutions consolidate questions and solutions that had been proposed by the Businesses in July 2020 and in March 2021.
The revised Interagency Questions and Solutions will be discovered on the FDIC web site.
Assertion of Applicability: This Monetary Establishment Letter applies to all FDIC-supervised monetary establishments.
Highlights:
* The Interagency Questions and Solutions present info to help monetary establishments in assembly their federal flood insurance coverage compliance obligations, and to extend public understanding of flood insurance coverage necessities.
* The Businesses are issuing 144 new and up to date questions and solutions on flood insurance coverage to replicate important legislative modifications to the flood insurance coverage necessities made by the Biggert-Waters Flood Insurance coverage Reform Act of 2012 and the Home-owner Flood Insurance coverage Affordability Act of 2014.
* In July 2020, the Businesses proposed new and revised questions and solutions that coated a broad vary of matters associated to technical flood insurance coverage points, together with the escrow of flood insurance coverage premiums, the indifferent construction exemption to the necessary buy of flood insurance coverage requirement, and the drive placement procedures. In March 2021, the Businesses additionally proposed new questions and solutions associated to the personal flood insurance coverage provisions of the Biggert-Waters Act.
* The Interagency Questions and Solutions incorporate the general public feedback obtained from the 2 proposals issued in July 2020 and March 2021. The Businesses made non-substantive revisions to sure beforehand issued questions and solutions to extra immediately reply to the questions, to supply extra readability, or to make different technical corrections. Moreover, the Businesses reorganized the questions and solutions by matter to make it simpler for customers to seek out and evaluation info associated to technical flood insurance coverage matters.
* These Interagency Questions and Solutions supersede the 2009 Interagency Questions and Solutions (and the 2011 amendments to the 2009 Interagency Questions and Solutions) and complement different steerage or interpretations issued by the Businesses not coated by the Interagency Questions and Solutions.
Attachments:
* Flood Insurance coverage: Proposed Revisions to Interagency Questions and Solutions (https://www.fdic.gov/information/financial-institution-letters/2020/fil20067.html)
* Non-public Flood Insurance coverage: Proposed New Interagency Questions and Solutions (https://www.fdic.gov/information/financial-institution-letters/2021/fil21016.html)
* Revised Interagency Questions and Solutions Concerning Flood Insurance coverage – PDF (https://www.fdic.gov/information/financial-institution-letters/2022/fil22020a.pdf)
Associated Matter:
Client Compliance/Safety
