When Congress passed the Biggert Waters Act of 2012 (BW12), the intent of Congress was to make it easier for lenders to accept private flood insurance to satisfy the mandatory purchase requirement.  However, what the Act did was create vague language that took lending regulators seven years to finalize.  Since the lending regulators had to base the final rule around the legislative language, lenders worried that accepting the wrong private flood policy could be seen by a regulator as a violation of the law which would mean a fine of thousands of dollars. In January, the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (Board), the Federal Deposit Insurance Corporation (FDIC), the Farm Credit Administration (FCA), and the National Credit Union Administration (NCUA) (known going forward as the Regulators) issued their final guidance to lenders on how to accept a private flood policy, and on July 1st 2019 it became effective.  Even with the new rule, which should make business easier going forward for consumers purchasing private flood insurance, some questions remain and the industry hopes to receive answers in the coming months.  The final rule breaks the acceptance of private […]

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