Flood Insurance for Cancelled Communities

WHAT?

Does your financial institution service a community where the sale of flood insurance authorized by the National Flood Insurance Program (NFIP) has been suspended? If not, will one of the communities your financial institution services be next on the list of suspended communities?

Many of you receive daily or weekly compliance updates that frequently contain a list of communities across the nation that have been suspended from the program. The process for suspending a community from the NFIP begins at least six months prior to the suspension date; therefore, the community does have time to ensure proper documentation of legally enforceable floodplain management measures are taken. If the community fails to take appropriate steps and is not reinstated in the NFIP there may be a significant impact on a financial institution’s lending practices. We will dive into this issue that may be plaguing your financial institution and determine how to swim through the legalities of lending in these communities.

WHY?

This two-hour webinar explains the requirements of communities to take adequate floodplain management measures and how a community falls into a suspended status. In addition, we will look to see how a community can be reactivated once a suspension occurs. The program will explain why your financial institution should track these community suspension notifications and what steps you must take if you lend in a suspended community. Also, how does a community suspension impact those loans on your books that are in the community and have flood insurance coverage under the NFIP? Participants will receive a detailed manual that serves as a handbook long after the program is completed.

Covered Topics:

  • What steps must a community take to become authorized under the National Flood Insurance Program to offer flood insurance
  • How does a community become suspended from the NFIP
  • Can a community become reinstated into the NFIP and what steps must be taken for reinstatement
  • How does a financial institution know if a community has been suspended under the NFIP
  • May a financial institution that is not covered under the NFIP make a loan in a nonparticipating community
  • Can you continue to make loans for building-secured loans if the community has been suspended from the NFIP
  • Are the loans your financial institution has on the books covered by a flood insurance policy still serviceable loans if the community has been suspended by the NFIP
  • What happens to your ability to make building secured loans if a community decides to withdraw from the NFIP

Who Should Attend?

The program is designed for loan officers, compliance officers, loan processors and clerks and auditors.  


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   OnDemand Recording - $295   
   CD-ROM - $345