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ABA: The American Bankers Association
Compliance News

Agencies Issue Long-Awaited Final Rule on Private Flood Insurance Acceptance

The financial regulatory agencies on Friday released a final rule governing the acceptance of private flood insurance. The rule, which will be effective on July 1, 2019, is the long-awaited implementation of the 2012 Biggert Waters Act provision that requires federally regulated lending institutions to accept private flood insurance policies that meet certain statutory criteria. Implementation of the statutory requirements without impeding the development of a market for private flood insurance — as advocated by ABA — was such a challenge that the banking agencies issued an initial proposal in 2013, and after reviewing the comments published a revised proposal in 2016.