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Joint Release

Board of Governors of the Federal Reserve System

Farm Credit Administration

Federal Deposit Insurance Corporation

Office of the Comptroller of the Currency

Agencies Issue Statement on Financial Institutions Issuing Loans When National Flood Insurance Program is Unavailable

December 28, 2018

For Immediate Release

The federal bank regulatory agencies remind banks, savings associations, and Farm Credit System institutions that they can continue to make loans during periods when the National Flood Insurance Program (NFIP) administered by the Federal Emergency Management Agency (FEMA) is unavailable.

The attached guidance issued in 2010 is generally applicable whenever the NFIP is unavailable. As explained in the guidance, lenders may continue to make loans subject to the federal flood insurance statutes without flood insurance during a period when the NFIP is not available. However, lenders must continue to make flood determinations, provide timely, complete, and accurate notices to borrowers, and comply with other parts of the flood insurance regulations. In addition, lenders must evaluate safety and soundness and legal risks and prudently manage those risks during the lapse period.

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Last Updated: December 28, 2018