Implementing the New Interagency Flood Insurance Questions and Answers Training Manual


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On May 11, 2022, the Board of Governors of the Federal Reserve System, the Farm Credit Administration, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency (jointly, the agencies) issued revised questions and answers (Q & As) regarding federal flood insurance law and the agencies’ implementing regulations.

The Q & As have not been updated since 2011. There have been multiple new laws that amended the flood insurance requirements in that period. The interagency regulations have also been revised several times. There are answers in the existing Q & As that are incorrect and following the guidance could result in violations. Eleven years is a long wait for an update, but this appears to be a case of better late than never.

The new and revised Q & As:

  • Include 140 questions in a 263-page document broken down into 19 sections.
  • Are effective immediately.
  • Cover a 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.

The Q & As contain information and clarification not included in the laws or regulations. This is essential information that all lenders need to assure full compliance, and thereby avoid civil monetary penalties. The Q & As are effective immediately, there is no delayed effective date. Lenders must get it right, right now.

Upon completion of this program, participants understand the new and revised questions.