Flood Essentials

Flood Insurance rules have changed continuously over the past few years. On July 6, 2012, Congress passed the Biggert Waters Flood Insurance Reform Act (Biggert-Waters). On March 23, 2014, Congress passed the Homeowner Flood Insurance Affordability Act (Affordability Act). Final rules implementing the two laws have been published and implemented in recent years.

In May of 2022, the Agencies issued revised questions and answers regarding federal flood insurance law and the agencies’ implementing regulations that were effective immediately. The agencies issue record numbers of Flood violations!  Each year’ fines larger than the year before.

In September and December of 2024, the FEMA NFIP policies almost lapsed.  They are set to do so again in March.

Institutions continue to struggle with getting things right.  Join us in breaking down the broad range of technical flood insurance topics, including the escrow of flood insurance premiums, the detached structure exemption to the flood insurance purchase requirement, force placement procedures, and private flood insurance. Additionally, we will discuss what to do if Government flood policies do not exist! Participants receive a detailed manual that serves as a handbook long after the program is completed.

Topics include:

• Determining the Applicability of Flood Insurance Requirements for Certain Loans;
• Exemptions from the Mandatory Flood Insurance Purchase Requirements;
• Private Flood Insurance – Mandatory Acceptance;
• Private Flood Insurance – Discretionary Acceptance;
• Private Flood Insurance – General Compliance;
• Standard Flood Hazard Determination Form (SFHDF);
• Flood Insurance Determination Fees;
• Flood Zone Discrepancies;
• Notice of Special Flood Hazards and Availability of Federal Disaster Relief;
• Determining the Appropriate Amount of Flood Insurance Required;
• Flood Insurance Requirements for Construction Loans;
• Flood Insurance Requirements for Residential Condominiums and Co-Ops;
• Flood Insurance Requirements for Home Equity Loans, Lines of Credit, Subordinate Liens, and Other Security Interests in Collateral Located in an SFHA;
• Requirement to Escrow Flood Insurance Premiums and Fees – General;
• Requirement to Escrow Flood Insurance Premiums and Fees – Escrow Small Lender Exception;
• Requirement to Escrow Flood Insurance Premiums and Fees – Escrow Loan Exceptions;
• Force Placement of Flood Insurance;
• Flood Insurance Requirements in the Event of the Sale or Transfer of a Designated Loan and/or Its Servicing Rights;
• How to handle Flood insurance requirements without Government NFIP and
• Mandatory Civil Money Penalties.

Who should attend:

The program is designed for loan operations management, lenders, risk managers, compliance officers, loan servicing personnel, auditors, and others with responsibilities related to obtaining flood insurance at origination and maintaining flood insurance throughout the life of a loan.