Interagency Flood Insurance Rule Mandates Escrow of Flood Insurance Premiums for Certain Lenders
Five federal agencies, including the NCUA, have jointly issued a final rule that addresses flood insurance. While the rule changes are expansive, two key changes will require financial institutions with $1 billion or more in assets to escrow for flood insurance premiums and would exempt certain detached structures from the mandatory requirement to purchase flood insurance. The new provisions go into effect on January 1, 2016. [6/23/15]
