Regulatory AlertsCA 20-7: Flood Insurance Compliance in Response to the Coronavirus
The Board of Governors of the Federal Reserve System issued this letter to guide state member banks on flood insurance compliance during the COVID-19 national emergency. The guidance clarifies that while loan modifications generally trigger new flood insurance requirements, the Federal Reserve will not take enforcement actions against institutions making good-faith efforts to support borrowers. Additionally, the letter explains how FEMA's extension of the National Flood Insurance Program grace period to 120 days affects lender force placement obligations and notification timelines.
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