Compliance Resource training manuals are designed to be used when conducting in-house training, whether initial training upon implementation of the new requirement, periodic training for new team members or remedial training for longer-term team members.
The proposed rule requires regulated lending institutions to accept policies that meet the statutory definition of private flood insurance in the Biggert-Waters Act and permit regulated lending institutions to accept flood insurance provided by private insurers that does not meet the statutory definition of “private flood insurance” on a discretionary basis, subject to certain restrictions.
Under the proposal lenders must conduct a verification to determine that the policy meets the definition of “private flood insurance.” The proposal includes an optional safe harbor that minimizes the compliance burden, but does not assure adequate collateral protection. The Agencies are proposing to permit a regulated lending institution to exercise its discretion to accept certain types of flood insurance policies issued by a private insurer other than private flood insurance policies that an institution is required to accept.
The proposal also would establish criteria to assist in determining that coverage offered by a mutual aid society assures compliance with federal flood insurance laws.
The Proposed Private Flood Insurance Rules Training Manual covers the details of the proposed rule including applicable laws and regulations, general requirements, the proposed mandatory acceptance of private policies, and potential penalties.