I'm struggling with the timing requirements when coverage has lapsed. As I read it, in FDPA, it indicates that we have to wait 45 days to force place and charge a customer. However in the Biggert Waters rule, it says we can force place and charge immediately, not waiting the 45 days. Am I confusing the two references? Is there a differentiation between the two? I read another post by Dave D., and it indicates that we can force place and charge on the day coverage has lapsed. So, just trying to reconcile in my mind the final answer on this.

we can force place and charge on the day coverage has lapsed.

This is it.

As I read it, in FDPA, it indicates that we have to wait 45 days to force place and charge a customer.

Curious, where in the FDPA is that located?

Maybe I'm looking at outdated information, but this is on the FDIC's regulations page. I've not worked with Flood in a number of years, so I'm getting acclimated to it. So, any direction is appreciated!

§ 339.7 Force placement of flood insurance.

(a) Notice and purchase of coverage. If an FDIC-supervised institution, or a servicer acting on its behalf, determines at any time during the term of a designated loan, that the building or mobile home and any personal property securing the designated loan is not covered by flood insurance or is covered by flood insurance in an amount less than the amount required under § 339.3, then the FDIC-supervised institution or its servicer shall notify the borrower that the borrower should obtain flood insurance, at the borrower's expense, in an amount at least equal to the amount required under § 339.3, for the remaining term of the loan. If the borrower fails to obtain flood insurance within 45 days after notification, then the FDIC-supervised institution or its servicer shall purchase insurance on the borrower's behalf. The FDIC-supervised institution or its servicer may charge the borrower for the cost of premiums and fees incurred in purchasing the insurance, including premiums or fees incurred for coverage beginning on the date on which flood insurance coverage lapsed or did not provide a sufficient coverage amount.

That says when you have to purchase insurance (no later than 45 days).

This is the key: "servicer may charge the borrower for the cost of premiums and fees incurred in purchasing the insurance, including premiums or fees incurred for coverage beginning on the date on which flood insurance coverage lapsed"

Thanks Randy. So if coverage has lapsed, we can force place and charge immediately. But, if we find the property is not covered or the amount is inadequate, we have to notify and wait 45 days to force place and charge the borrower? Is that the distinction?

If coverage is inadequate, perhaps the borrower renewed their flood policy and decreased coverage, could we force place the insurance, notify the customer but not charge them until the 46th day?

You can always force place immediately and charge the borrower regardless of the situation. You always have to reverse the charges for any period the borrower subsequently proves they have adequate insurance coverage.

See bullet point three and attachment:

https://www.fdic.gov/news/news/financial/2015/fil15032.html