Heads up! FEMA announced they are rescinding the Mandatory Purchase of Flood Insurance Guidelines. With the passage of the Biggert-Waters Flood Act, many of the “guidelines” are or will become obsolete. There is no indication at this time as to whether the CFPB or the regulatory agencies will try to develop something similar to guide banks with these difficult requirements. If they do; however, it won’t be anytime soon. This means the Interagency Questions and Answers Regarding Flood Insurance is all we really have to go on for now.
So what does this mean for you? First and foremost, the Guidelines were always just that…guidelines. They were in no way “the regulation”, even though some examiners treated them as such. We feel that the core principles of Guidelines still apply and you can rely on them for the most part. You just need to make sure you are aware of the Biggert-Waters Flood Act changes and how they affect the Guidelines.