Why was the National Flood Insurance Act of 1968 passed?
The act was motivated by a long history of property damage and loss of life due to flooding. The legislation was finally promulgated because of the recent flood loss sustained in Florida and Louisiana following the destruction caused by the Hurricane Betsy flood surge in 1965.
What is the flood Disaster Protection Act of 1973?
The FDPA provides that a regulated lending institution may not make, increase, extend, or renew any loan secured by improved real property that is located in an SFHA unless the improved real property is covered by the minimum amount of flood insurance required by statute.
Under which of the following circumstances would flood insurance be required?
Flood insurance is required for property improvements located in an SFHA Zone A (an area subject to inundation by a 1%-annual-chance flood event) or a Zone V (an area along the coast subject to inundation by a 1%-annual-chance flood event with additional hazards associated with storm-induced waves).
Are Fannie Mae loans exempt from flood insurance requirements?
Fannie Mae does not require evidence of a master flood insurance policy, provided the unit owner maintains an individual flood dwelling policy that meets the coverage requirements of this Guide for the following loans or project types: high LTV refinance loans, units in a two- to four-unit project, and.
Why is NFIP important?
The NFIP provides flood insurance to property owners, renters and businesses, and having this coverage helps them recover faster when floodwaters recede. The NFIP works with communities required to adopt and enforce floodplain management regulations that help mitigate flooding effects.
Does the flood Disaster Protection Act protect the federal government?
Like it or not, this Act “deputized” financial institutions in a sense and made them solely responsible for ensuring that borrowers obtain and maintain flood insurance, when it’s required. In doing so, financial institutions are protecting the Federal government.
What are the private flood insurance provisions of the Biggert Waters Act?
The final rule requires regulated institutions to accept flood insurance policies that meet the Biggert-Waters Act statutory definition of “private flood insurance” through four primary components: (1) mandatory acceptance of private flood insurance; (2) mandatory acceptance compliance aid; (3) discretionary acceptance …
What are some flaws built into the NFIP?
Major outstanding issues: Outstanding debt cannot be repaid solely through premiums. Barriers to private sector involvement need to be examined, but private fees must help pay for mitigation and mapping. There is no national requirement for property owners to disclose flood risk.
Can you cancel FEMA flood insurance?
Flood insurance coverage may be terminated at any time, by either canceling or nullifying the policy depending upon the reason for the transaction. If coverage is terminated, the insured may be entitled to a full or partial refund under applicable rules and regulations.
When did the Biggert Waters Act go into effect?
The forced placement provisions described above became effective July 6, 2012. Civil Money Penalties : Effective July 6, 2012, the maximum civil money penalty for a Flood Act violation was increased to $2,000 per day. The Biggert-Waters Act deleted the cap on penalties per year.
What are the penalties for violations of the Flood Act?
Civil Money Penalties : Effective July 6, 2012, the maximum civil money penalty for a Flood Act violation was increased to $2,000 per day. The Biggert-Waters Act deleted the cap on penalties per year.
What is the Biggert-Waters Act of 2012?
On July 6, 2012, President Obama signed into law the Biggert-Waters Flood Insurance Reform Act of 2012, (Biggert-Waters Act), which reauthorizes and reforms the NFIP through September 30, 2017.
How did the Biggert-Waters Act amend the Flood Act?
The Biggert-Waters Act amended the Flood Act to: Provide that the premiums and fees that a lender or servicer may charge the borrower include premiums or fees incurred for coverage beginning on the date on which flood insurance coverage lapsed or did not provide sufficient coverage;