Flood Disaster Protection Act Update

Flood Disaster Protection Act Policy Update Detail - 07/10/07

What's New

Topic 3 - Definitions. Includes definitions outlined in the Flood Disaster Protection Act and National Flood Insurance Act.

Topic 10 - Determination Fees. Provides guidance with respect to fees assessed to a borrower in determining whether a building or mobile home securing a loan is located or will be located in a special flood hazard area.

Topic 13 - Secondary and Audit Review. Formerly part of Topic 11 (Internal Monitoring/Training), addresses the role of secondary and audit review to ensure compliance.

What's Revised

Topic 2 - Policy Statement. Inclusion of a new reference to a financial institution's adherence to the National Flood Insurance Act (in addition to the Flood Disaster Protection Act). In addition, the following subtopics were added:

Requirement to Purchase Flood Insurance When Available

Exemptions

Topic 4 - Flood Disaster Protection Act Background. Formerly Topic 3, the final bullet points regarding the purpose of the Act were revised to directly mirror those found within the regulation.

Topic 6 - Flood Insurance Determination and Record Keeping. Formerly Topic 5, the following subtopics were expanded and revised:

Standard Flood Hazard Determination Form

Improved Real Property Located in a Special Flood Hazard Area

Improved Real Property in Special Flood Hazard Area Not in a Participating Community

Topic 7 - Notification Requirements. Formerly Topics 6 and 7, this topic was greatly expanded to include detailed guidance regarding notification requirements (in addition to a sample notice) to affected borrowers and includes the following subtopics:

General

Notice of Servicer's Identity

Guidelines for Extended and Administering Loans in Special Flood Hazard Areas

Bank Policy and Procedures

Topic 8 - Amount of Flood Insurance. The "Forced Placement of Insurance" subtopic was revised and slightly expanded.

Topic 9 - Escrow Accounts. This topic was revised and expanded to include a reference to Section 10 of RESPA.

Topic 12 - Staff Training. Formerly Topic 11 (Internal Monitoring/Training), guidance with respect to secondary and audit review was removed and replaced by a new topic.

Product Contents

Purpose and Contents - Topic 1
Policy Statement - Topic 2

Definitions - Topic 3

Flood Disaster Protection Act Background - Topic 4

NFIP Coverage - Topic 5

Flood Insurance Determination and Records - Topic 6

Notification Requirements and Written Acknowledgement - Topic 7

Amount of Flood Insurance - Topic 8

Escrow Accounts - Topic 9

Determination Fees - Topic 10

Penalties and Liabilities - Topic 11

Staff Training - Topic 12

Secondary and Audit Review - Topic 13

Includes the following form templates:

Flood Insurance Notification - 1 page
Flood Insurance Renewal Notice - 1 page
Flood Notice of Special Hazards - 1 page
Flood Remapping Customer Notice - 1 page

Ordering Information

This revised product is available to purchase from Bankpolicies.com for:

$125.00 - List Price

- or -

$50.00* - Update Price

*Applies only to clients who have purchased our Flood Disaster Protection Act Policy Template within the last three years.

If you have ordered this product after 06/10/07 you are eligible to receive the updated product at no charge.

Click here to place an order for this product. Clients who are eligible for our Legacy Rewards Volume Discount can apply their applicable discount level to the list or update price (whichever applies).

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