Flood compliance continues to result in civil money penalties for institutions that violate the Flood Disaster Protection Act (FDPA), even though the core requirements have remained unchanged for years. At its foundation, adequate flood insurance must be in place whenever a MIRE (Make, Increase, Renew, or Extend) event occurs and the property securing the loan is located in a Special Flood Hazard Area.
In addition, if a borrower allows coverage to lapse, your institution is responsible for force-placing flood insurance within required timeframes. Accurate calculations and close attention to timing are essential to maintaining compliance.
An effective flood compliance management program includes promptly obtaining flood determinations, correctly calculating minimum coverage amounts, meeting all notice requirements, and thoroughly reviewing flood insurance policies.
Join us as we break down FDPA requirements and help you strengthen your program to avoid gaps in flood compliance.