On October 8, 2013, the Agencies (OCC, FRB, FDIC, FCA and NCUA) issued a proposal to amend the flood insurance requirements. The proposed changes seek to implement provisions of the Biggert-Waters Flood Insurance Reform Act of 2012. This includes:
• Establishing escrow accounts for flood insurance premiums;
• Accepting private flood insurance policies;
• Charging borrowers for force-placed flood insurance; and,
• New and revised notifications.
The proposal also makes necessary technical corrections and clarifies other amendments made by the Act.
Comments for this proposal are due on or before December 10, 2013. Stay tuned!