The flood insurance regulations have been around since 1996 (the Act since the 60s!), yet examiners continue to cite numerous violations and fines. Compliance seems simple but is much more difficult in practice. Flood insurance compliance is always one of the regulators' principal areas of concern. We've also had changes in the law, dating back to the Biggert-Waters Flood Insurance Reform Act of 2012, that has influenced compliance efforts. As well, we finally saw final regulations around utilizing private flood insurance policies, and new FAQs were recently issued (they hadn’t been updated since 2011), with more to come. At some point in the future there will be significant changes coming to the program due to severe financial issues. These changes won’t just change the economics of the program; there will be compliance changes, too. We’re not positive what those will be yet, but there are tea leaves to read. More recently there have been some relaxed requirements due to the COVID-19 crisis.
We'll concentrate on some of the more vexing current issues in flood compliance, such as monitoring, contents coverage, and the ever-present condo problem, by talking through sample scenarios and explaining best practices in keeping your portfolio covered.
- Private flood insurance regulations – what do they mean and how does our institution comply?
- New FAQs – revisions and some new ones
- Relaxation on some of the timing and force-placement rules due to COVID-19
- What might happen to the NFIP when Congress gets around to amending the program? What will the compliance implications be?
- What exactly do the flood insurance rules cover?
- What is a covered structure or an insurable mobile home?
- Determinations: when you must do them, reliance upon previous determinations, disputes over their results, and the role of life-of-loan coverage
- Flood zone discrepancies - how to deal with them
- Insurable value - what is it and how is it calculated?
- Coverage Amounts: "Normal" situations, condo coverage, multi-structure, and construction situations
- "Knowledge is King" - when you have to know
- Documentation and retention: the Standard Flood Hazard Determination Form, notice to customers, and proof of insurance
- What do you have to monitor?
- The types of policies and their limitations, including NFIP (National Flood Insurance Program) and private policies
- Force-placing insurance - why and how
- Insurance premiums and Congressional action
- Increasing regulatory expectations
Who Should Attend?
This interactive session will give an in-depth understanding of these rules and is imperative for anyone performing duties in real estate lending areas of the financial institution. This includes loan officers, supervisors, auditors, closing agents, compliance officers, trainers and others working in these types of positions.
"Carl is a wealth of knowledge in all things compliance and I would not have passed my CRCM exam if it wasn't for listening to many of his webinars along the way." -- Don Savino, SVP Risk Management, Pacific Western Bank
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