Flood Fundamentals

On Demand Course

Instructor: Rebekah Leonard

Duration: 2 HR

What You'll Learn

Hurricanes. Sea swells. Rainstorms. Snow melts. Ice jams. Any one of these things can cause flooding and substantial damage to your bank’s collateral and your customer’s property. FEMA, the government agency that exists to help Americans through the worst emergencies, doesn’t have the ability or desire to foot the bill for every Act of God that wreaks havoc on the land. So they require flood insurance to help manage the risk – through you, the friendly neighborhood banker. Here's the problem: Flood compliance is COMPLICATED and INTIMIDATING. So many rules, so many details, so many fines! Examiners always pay great attention to flood compliance, because more often than not, they find violations… and one problem can sink into several penalties. No financial institution is immune – if you think you don’t have to worry about flood because you aren’t near the sea – think again!

The regulatory agencies, recognizing how broad and complex these issues are, began in 1997 to issue Interagency Q&As on the technical requirements of Federal flood insurance laws. Over the years, the Interagency Q&A have been amended, expanded and updated, with 2022 bringing the most significant updates yet. The 2022 FAQs address major developments that occurred in the flood world since the prior 2011 update. Not only was there the Biggert-Waters Flood Insurance Reform Act of 2012 and the Homeowner Flood Insurance Affordability Act of 2014, but then FEMA rolled out Risk Rating 2.0. All three of these actions had a direct impact on the Q&As.

Topics covered in this session

What properties must be insured
What loans must be insured
What can be waived and how
What exceptions apply
LOMCs, LOMAs, LOMRs, and LOMR-Fs
Construction, condos and townhomes – special handling required
Multiple buildings, multiple policies?
Buildings that would be better off swept away – worthless / low value buildings
Manufactured homes – the attachment issue
Determination fees and the Finance Charge issue
Ensuring proper coverage amount
Insurable Value
Ensuring proper evidence of insurance
Contents coverage – not to be overlooked!
Private policies – a whole new world
Escrowing
Force-placement
144 Flood Q&As and how they help you
Risk Rating 2.0
The all important “Kill Switch” that should be bestowed to every employee

Who Should Attend:

Compliance staff
Loan administration / production staff
Mortgage loan staff
Loan policy makers
Loan officers and audit staff

*This program does NOT qualify, nor meet the National Standard for NASBA accreditation.

About the Author:

Rebekah Leonard

Rebekah is the owner of Elucidate LLC, a compliance training and consulting company. Elucidate means to "make clear, explain, throw light upon", and describes Rebekah's desire to illuminate the complexities of compliance with passion and fun. She's created and produced a TRID music video parody and several Compliance Breakout escape rooms, which she frequently provides at state banking compliance conferences. She is an accomplished speaker and regularly provides webinars through BOL and Compliance Resource. Rebekah is currently serving as the VP Director of Compliance for a $6 Billion community bank in Montana. She began her career in 1995 at a private lending company, but soon settled into banking, where she's covered nearly all of it - customer service and teller work, loan processing and review, and security and business continuity. She now oversees CRA, BSA and all aspects of compliance as a senior leader. She has successfully navigated numerous FDIC Compliance, CRA, and BSA Exams. Rebekah has a bachelor's degree in Organizational Leadership from Chapman University (Magna cum Laude), attended the American Bankers Association National Compliance School in 2003, and has held her Certified Regulatory Compliance Manager designation since 2006.

On-Demand Course