No Guidance on Flood Insurance Compliance Coming from Federal Financial Regulators

The federal financial regulators in a letter to ABA stated they would not be able to provide requested information to facilitate compliance with the 2012 Biggert-Waters flood insurance reform law and this year’s Homeowner Flood Insurance Affordability Act, which addressed affordability problems in Biggert-Waters.

ABA had written the agencies in April asking for timetables and implementation plans and agency expectations for flood insurance changes (read the letter).

Acknowledging “[t]he importance of information and guidance to institutions in light of the various statutory changes,” the interagency letter nevertheless disavowed responsibility for updating the guidance because “much of the information contained in the [Guidelines] pertained to flood insurance matters outside of the Agencies’ authority.”

The agencies did announce that “provisions pertaining to detached structures [HFIAA §13] became effective upon enactment.” HFIAA §13 permits a bank to exercise its discretion not to require a flood policy covering detached, non-residential structures.

The letter is below.