Summary: |
The FDIC, Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, National Credit Union Administration, and Farm Credit Administration (the Agencies) are issuing interagency guidance to inform financial institutions about revisions to the Flood Disaster Protection Act of 1973 (the FDPA), which was amended by the Biggert-Waters Flood Insurance Reform Act of 2012 (the Act). The interagency guidance also provides information regarding the impact of the Act on the Agencies' proposed Interagency Questions and Answers.
Statement of Applicability to Institutions Under $1 Billion in Total Assets: This Financial Institution Letter (FIL) is applicable to all FDIC-supervised financial institutions. |
Highlights:
The following provisions of the Act became effective upon enactment:
The following provisions of the Act are not effective until regulations are issued:
Continuation of FIL-14-2013
Distribution:
Suggested Routing:
Note:
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Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation Office of the Comptroller of the Currency National Credit Union Administration Farm Credit Administration |
Interagency Statement on the Impact of Biggert-Waters Act The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the National Credit Union Administration, and the Farm Credit Administration (the Agencies) developed this guidance to inform financial institutions about revisions to the Flood Disaster Protection Act of 1973 (the FDPA). This guidance discusses the effective dates of certain provisions of the Biggert-Waters Flood Insurance Reform Act of 2012 (the Act), enacted July 6, 2012, and the impact of the Act on the Agencies’ proposed Interagency Questions and Answers. Biggert-Waters Act Amendments
It is the Agencies’ position that the force placement provisions of the Act described above became effective upon enactment.
Biggert-Waters Act and Impact on Agency Guidance The Agencies proposed question and answer 62 to address whether a borrower may be charged for the cost of flood insurance that provides coverage for the 45-day force placement period (2009 Interagency Questions and Answers, 74 FR 35914 (July 21, 2009) and 2011 Interagency Questions and Answers, 76 FR 64175 (Oct. 17, 2011)). 2 Because the Act addresses this issue, proposed question and answer 62 is no longer necessary. In addition, the Agencies proposed revised question and answer 60 and proposed revisions to previously finalized question and answer 57. The Agencies do not intend to finalize proposed questions and answers 57 and 60 at this time. After final regulations have been promulgated, the Agencies expect to undertake a review of the Interagency Questions and Answers and may propose changes as appropriate.
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Additional Related Topics:
- Biggert-Waters Flood Insurance Reform Act of 2012
- Flood Disaster Protection Act of 1973
- 1
The Act was recently amended by Public Law No. 112-281 to clarify that these provisions apply to residential improved real estate.
- 2
http://www.gpo.gov/fdsys/pkg/FR-2009-07-21/pdf/E9-17129.pdf and http://www.gpo.gov/fdsys/pkg/FR-2011-10-17/pdf/2011-26749.pdf .