Mon, Nov 17, 2014
Washington, District Of Columbia
A Regulatory Comment Call for NCUA’s proposed flood insurance rule has been posted to CUNA’s Regulatory Advocacy website. NCUA along with the other banking agencies are proposing to amend their regulations regarding loans in areas having special flood hazards to implement certain provisions of the Homeowner Flood Insurance Affordability Act of 2014.
The proposal would:
- Establish mandatory requirements with respect to the escrow of flood insurance payments for loans made on or after January 1, 2016. The proposal also includes exceptions to this requirement, including one for credit unions with assets of less than $1 billion;
- Create an existing loan escrow option requiring credit unions to offer and make available to a borrower the option to escrow flood insurance premiums and fees for loans that are outstanding as of January 1, 2016; and
- Provide an exemption for certain detached structures from the mandatory flood insurance purchase requirement.
NCUA is accepting comments on the proposal until December 29; please send comments to CUNA staff by December 19.