Introduction to Flood Insurance

When it comes to flood insurance compliance there is a lot to remember and even more ways to mess it up.  There are determinations to pull, notices to provide, calculations to make, timing requirements to follow, etc.  There’s little to no room for error and failure to comply can result in hefty civil money penalties.  This is an area you want to ensure your financial institution gets right!

New to flood insurance compliance?  Need a refresher on the basics?  Check out our webinar, “An Introduction to Flood Insurance”, which is available now OnDemand.  Here’s one of the questions we received during the webinar:

Question: Will you explain further on what constitutes a loan being “modified” (e.g., rate changes only, payment schedule change only)?  What if there is not an extension in the modification?

Answer:  A modification can be just about any change to the loan agreement, although Regulation Z does prohibit you from adding a variable-rate feature or going from open-end to closed-end (or vice versa) without giving new disclosures.  Flood insurance requirements are triggered whenever you make, increase, renew/refinance, or extend a loan agreement – whether the change is made with a new agreement or modification to an existing agreement.

As with all of our training, you can expect our signature plain English style.  Check out this clip from the webinar:


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