On March 29, 2013, regulators issued an interagency statement on portions of the Biggert-Waters Act. The bulletin clarifies a few of the amendments and (more importantly) when these provisions become effective.
The bulletin addresses:
- Force Placement (effective 7/6/12)
- Civil Money Penalties – $2,000 per violation with no cap (effective 7/6/12)
- Private Flood Insurance – acceptable standards and disclosures (not effective until regulations are issued).
- Escrows – clarification this only applies to residential real estate and the exemption for banks that are 1) < $1 billion AND 2) not required to and don’t require escrows (not effective until regulations are issued; however, the law requires this beginning 7/6/14).
- Clarification about 3 of the proposed FAQs pertaining to force placement. One will be dropped and the other two will be reviewed after new regulations are issued.
Apparently, the regulators will be issuing new regulations to adopt the Biggert-Waters Act changes. In the past, FEMA has been slow and issued few regulations regarding the Flood Insurance Act. However, it appears we may see much needed clarification soon – just don’t hold your breath!