Attached is a copy of an interagency proposal that would expand current requirements
for loans in areas having special flood hazards, including the requirements of Part 339 of
the FDIC's rules and regulations. The proposal would implement the National Flood
Insurance Reform Act of 1994 by:
- Establishing new escrow requirements for flood insurance premiums;
- Providing explicit authority for lenders and servicers to
"force-place" flood insurance if adequate coverage is lacking;
- Enhancing flood hazard notice requirements; and
- Authorizing lenders to charge fees for determining if a property is
located in a flood hazard area.
The proposal was issued by the five federal regulators of depository institutions and
by the Farm Credit Administration, which is proposing regulations for the first time to
cover institutions under its supervision.
Written comments are due by December 18, 1995. They may be sent to the FDIC according
to the instructions on Page 53962 of the attached Federal Register notice or through
Internet (COMMENTS@FDIC.GOV).
For more information you may contact the following: Mark Mellon, Senior Attorney in the
Regulation and Legislation Section of the FDIC Legal Division (202/898-3854); Ken Baebel,
Senior Review Examiner in the Division of Compliance and Consumer Affairs (202/942-3086);
or Barbara L. Boehm, Consumer Affairs Specialist in the Division of Compliance and
Consumer Affairs (202/942-3631).
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Paul L. Sachtleben
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Director |
Attachment
Distribution: FDIC-Supervised Banks (Commercial and Savings)
