The Flood Insurance rules have gone through numerous changes since 2012.
- On July 6, 2012 Congress passed the Biggert-Waters Flood Insurance Reform Act (Biggert-Waters).
- On March 23, 2014 Congress passed the Homeowner Flood Insurance Affordability Act (Affordability Act). The Affordability Act revised certain sections of Biggert-Waters, eliminated or delayed other sections and created new rules. Those regulatory changes were generally effective October 1, 2015; the escrow provisions were delayed until January 1, 2016.
- One aspect of Biggert-Waters not addressed in the final rule was the mandatory acceptance of private flood insurance.
- On October 31, 2016, the Comptroller of the Currency, the Federal Reserve Board, the Federal Deposit Insurance Corporation, and the Farm Credit Administration (the Agencies) issued a new proposal to amend their regulations regarding loans in areas having special flood hazards to implement the private flood insurance provisions of Biggert-Waters. The comment period ended on January 6, 2017.
- During the 2017 and 2018 sessions of Congress, bills amending private flood insurance, including the Private Flood Insurance Market Development Act, were considered but did not pass.
- During January 2019 the Agencies published a final rule implementing the private flood insurance rules, effective July 1, 2019.
Upon completion of this manual, you’ll understand the current status of private flood insurance and the final rules that require lenders to accept private flood insurance.