Floods of rule amendments: Final flood insurance changes
With all the excitement surrounding the implementation of the TILA-RESPA Integrated Disclosure rule, some other significant compliance changes got pushed to the back seat. Among them are clarifications to the Final Flood Insurance Rule Amendments, which went into effect Oct. 1, 2015, the result of efforts from five federal regulatory agencies. Other amendments to the flood insurance rules come into play with the start of the new year. Let’s take a look at the major changes and how will they impact your financial institution.
In a nutshell, the federal financial regulatory agencies jointly amended their flood insurance regulations in order to incorporate changes effected by the Homeowner Flood Insurance Affordability Act of 2014. Financial institutions will be required to escrow for flood insurance premiums and other fees for residential improved properties, but new exemptions are created for certain detached structures from the mandatory flood insurance requirement. There are also clarifications dealing with the force placement of flood insurance premiums.
Let’s delve into some details.continue reading »