Joint Release/Agencies Request Comment on Proposed Private Flood Insurance Rule — 2016-10-31

Board of Governors of the Federal Reserve System Farm Credit Administration Joint Release Federal Deposit Insurance Corporation National Credit Union Administration Office of the Comptroller of the Currency Agencies Request Comment on Proposed Private Flood Insurance Rule WASHINGTON—Five federal regulatory agencies are requesting comment on a joint notice of proposed rulemaking to implement provisions of the Biggert-Waters Flood Insurance Reform Act (Biggert-Waters Act) that require regulated lending institutions to accept certain private flood insurance policies in addition to policies made available by the Federal Emergency Management Agency. The federal flood insurance statutes require regulated lending institutions to ensure that flood insurance is purchased in connection with loans secured by improved real property located in areas having special flood hazards. Under the Biggert-Waters Act, regulated lenders must accept, in satisfaction of this mandatory purchase requirement, policies issued by private insurers that satisfy the criteria specified in the Biggert-Waters Act.