Alert July 28, 2009

Federal Banking Agencies Issue Final Revisions to Flood Insurance Q&As

The federal banking agencies issued final revisions to the Interagency Questions and Answers Regarding Flood Insurance.  The agencies are also soliciting comments on proposed revisions to the Q&As.  The final and proposed revisions cover a wide-range of flood insurance issues, including: (1) when flood insurance is required; (2) the appropriate amount of flood insurance; (3) exemptions; (4) flood insurance requirements for nonresidential buildings and condominiums; (5) flood insurance requirements for home equity loans, home equity lines of credit and construction loans; (6) escrow requirements; (7) force placement; (8) private insurance policies; and (9) flood zone discrepancies.  The revised Q&As are effective September 21, 2009 and comments on the proposals must be received by the same date.  Click here for the final and proposed Q&As.