It is funny you should say that because this is what I thought too...so I asked the ABA. I specifically pointed to their own Staff Analysis of the BWA that says while banks can now charge for ALL premiums on force-placed flood back to the expiration date, they still can't actually "place" the policy until day 46. I said with the fact that we now have to refund any overlap, why can we not actually place the darn insurance so EVERYONE was covered.
Their response to me was (paraphrasing) that the BW was not clear and subject to interpretation. If you review their document from November 19, 2012 they specify the need for the regulators to clarify and revise the Proposed Q&A #62 that dealt with this question. Section 100244 of BW supposedly clarifies this but seems to require the agencies to write a regulation to "make it so number one."
So, yeah now, that I have reviewed my notes, I have answered by own question about needing to wait for magical regulations.
What do others think of this issue - what feedback have you all gotten?