CUNA generally supports an interagency proposal amending loans in areas having special flood hazards, but suggested several improvements in a comment letter filed this week. The proposal is mandated by the Biggert-Waters Act, and was issued jointly with other federal financial regulators.
The proposed rule would require credit unions and other lending institutions to accept policies that meet the statutory definition of “private flood insurance” and permit them to accept flood insurance provided by private insurers that does not meet the statutory definition but does meet certain established criteria.
“While we generally agree with most of the proposed requirements, we ask NCUA to be mindful of placing additional regulatory requirements on credit unions and to provide adequate time for compliance with any new requirements, being mindful that the changes contemplated will affect most--if not all--credit unions,” reads CUNA’s letter.
The letter also makes the following suggestions:
For additional details, as well as a link to CUNA’s letter, see CUNA’s Removing Barriers Blog.