Thread Options
#1771392 - 12/31/12 08:41 PM Mandatory Flood Ins Escrow
Combustible Offline
Diamond Poster
Joined: Dec 2008
Posts: 1,268
Ok, just to make sure I am reading this correctly and that it is the most current information, mandatory flood insurance escrow is not effective until July 6, 2014--correct?

Return to Top
Flood Compliance
#1771524 - 01/02/13 04:20 PM Re: Mandatory Flood Ins Escrow Combustible
Jerod Moyer Offline
Platinum Poster
Jerod Moyer
Joined: Oct 2005
Posts: 667
Sioux Falls, SD
Well sort of... the current regulations (FDIC for instance) already require some mandatory escrowing for flood insurance:

If a bank requires the escrow of taxes, insurance premiums, fees, or any other charges for a loan secured by residential improved real estate or a mobile home that is made, increased, extended, or renewed… the bank shall also require the escrow of all premiums and fees for any flood insurance… [§339.5]

The BWFIRA of 2012 has some new provisions that are not effective until July 2014.
_________________________
Jerod Moyer
www.bankerscompliance.com

Return to Top
#1771587 - 01/02/13 05:41 PM Re: Mandatory Flood Ins Escrow Combustible
Combustible Offline
Diamond Poster
Joined: Dec 2008
Posts: 1,268
Yes, sir. That is my understanding also. Do the new BWFIRA provisions require all banks to escrow for flood insurance regardless of whether or not the bank is requiring homeowner's or tax escrows?

Return to Top
#1771770 - 01/02/13 09:57 PM Re: Mandatory Flood Ins Escrow Combustible
Combustible Offline
Diamond Poster
Joined: Dec 2008
Posts: 1,268
Bump please....

Return to Top
#1771826 - 01/03/13 12:31 PM Re: Mandatory Flood Ins Escrow Combustible
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 75,540
Galveston, TX
I would suggest you relax on the escrow thing until regulations are issued:

SEC. 100209. ESCROW OF FLOOD INSURANCE PAYMENTS.

(a) IN GENERAL.—Paragraph (1) of section 102(d) of the Flood
Disaster Protection Act of 1973 (42 U.S.C. 4012a(d)) is amended
to read as follows:

(1) REGULATED LENDING INSTITUTIONS.—

(A) FEDERAL ENTITIES RESPONSIBLE FOR LENDING
REGULATIONS.—Each Federal entity for lending regulation (after consultation and coordination with the Federal Financial Institutions Examination Council) shall, by regulation,direct that all premiums and fees for flood insurance under the National Flood Insurance Act of 1968, for improved real estate or a mobile home, shall be paid to the regulated lending institution or servicer for any loan secured by the improved real estate or mobile home, with the same frequency as payments on the loan are made, for the duration of the loan.

Also, institution with less than $1 billion in assets will be exempt.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1911979 - 04/04/14 07:25 PM Re: Mandatory Flood Ins Escrow Combustible
cheech Offline
100 Club
Joined: Jun 2010
Posts: 207
Chatsworh PA
I was under the impression from an examiner the exemption was - Less than $ 1 billion in assets AND the institution was not required by federal or state law to escrow taxes or insurance for the term of the residential or mobile home loans AND the institution did not have a policy of consistently and uniformly requiring escrow of taxes and insurance for residential or mobile home loans.

Return to Top
#1912006 - 04/04/14 07:56 PM Re: Mandatory Flood Ins Escrow Combustible
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 75,540
Galveston, TX
I was under the impression from an examiner the exemption was.....

The exemption isn't anything yet, the regulations have yet to be finalized and probably won't be for a while due to the delay imposed by the recent legislation.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1912031 - 04/04/14 08:32 PM Re: Mandatory Flood Ins Escrow Combustible
cheech Offline
100 Club
Joined: Jun 2010
Posts: 207
Chatsworh PA
So, is it not open for discussion?

Return to Top
#1912040 - 04/04/14 08:42 PM Re: Mandatory Flood Ins Escrow cheech
Reads Regs Offline
Diamond Poster
Joined: Nov 2004
Posts: 2,282
On 3/21/14, President Obama signed the Homeowner Flood Insurance Affordability Act into law. This law includes some provisions that modify the Biggert-Waters flood escrow requirements. The regulators will have to look at the changes this law made and come out with regulations. See pages 11 - 13 of the law. http://beta.congress.gov/113/bills/hr3370/BILLS-113hr3370enr.pdf
The July 2014 deadline has been changed to January 2016.
_________________________
Opinions expressed are my own and not necessarily those of my employer. They are not legal advice.

Return to Top
#1912041 - 04/04/14 08:43 PM Re: Mandatory Flood Ins Escrow Combustible
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 75,540
Galveston, TX
cheech - The proposal? The comment period closed December 10, 2013 unless the regulators choose to re-open it.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1912048 - 04/04/14 08:58 PM Re: Mandatory Flood Ins Escrow Combustible
cheech Offline
100 Club
Joined: Jun 2010
Posts: 207
Chatsworh PA
Not the proposal, the upcoming changes.

Return to Top
#1912054 - 04/04/14 09:20 PM Re: Mandatory Flood Ins Escrow Combustible
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 75,540
Galveston, TX
What would you like to discuss? The proposed changes that are no longer open for comment and have not been issued in final form and whose implementation has been delayed until 2016?

If you are referring to other changes, which one as this thread was originally about escrows.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1912062 - 04/04/14 09:35 PM Re: Mandatory Flood Ins Escrow Combustible
cheech Offline
100 Club
Joined: Jun 2010
Posts: 207
Chatsworh PA
You do not have to be arrogant.

Return to Top
#1912079 - 04/04/14 10:03 PM Re: Mandatory Flood Ins Escrow Combustible
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 75,540
Galveston, TX
I'm not being arrogant, I'm just trying to figure out what you were wanting to discuss.

If you want to discuss the escrow requirements, then I will let someone else respond as there really is nothing to discuss until either they re-issue the proposal or they issue the final regulations. Discussing a proposal in which comments have closed and not knowing what the final regulations will say, is really not that productive of an exercise, especially considering implementation is now almost two years away.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top