Flood compliance continues to cause institutions to be assessed civil money penalties for violations of the Flood Disaster Protection Act (FDPA) even though the basic regulatory requirements have remained the same for a number of years. Bottom line, adequate flood insurance is required to be in place when a MIRE (Make, Increase, Renew, or Extent) event occurs and the structure securing the loan is located in a special flood hazard area. And, on top of that, if the borrowers drop their flood insurance your institution must force place insurance in a timely manner.
The components of an effective flood compliance management program include timely ordering of the determination; proper calculation of the minimum flood insurance coverage; fulfilling notice requirements; and evaluating flood policies. Join us as we discuss the requirements of the FDPA so that you can ensure there are no leaks in your institution’s flood compliance program!
What You’ll Learn
- Understand critical elements of the Standard Flood Hazard Determination Form (SFHDF)
- Calculate the minimum amount of flood insurance required
- Determine when the detached exemption is available
- Explain the differences between an NFIP versus a private flood policy
- Appropriately analyze a private flood policy
- Recognize timing requirements for force placing flood insurance
- Watch for potential flood issues with third-party service providers
- Implement monitoring and tracking tools to aid with fulfilling compliance responsibilities
- Utilize resources, including the Interagency Flood FAQs, when answering questions
Who Should Attend
This informative session is designed for commercial mortgage lenders, real estate lenders, loan closers, loan processors, compliance, risk and audit personnel.