Flood Disaster Protection
This page provides links to information to help Farm Credit System lenders understand rules on flood insurance.
By law, lenders must not make, increase, extend, or renew loans that are secured either by improved real estate or a mobile home if (a) the property is not covered by flood insurance and (b) the property is located in a community that participates in the National Flood Insurance Program.
Regulations and Guidance
FCA, along with five other agencies (Office of the Comptroller of the Currency, Federal Reserve System, Federal Deposit Insurance Corporation, Office of Thrift Supervision, and National Credit Union Administration), issued a joint final rule to govern loans in areas having special flood hazards. This rule was published in the Federal Register on July 6, 1995.
In July 2009, the agencies issued updated questions and answers about flood insurance as guidance to further clarify the laws and regulations.
On October 17, 2011, the agencies issued a notice and request for comment to revise four of the questions and answers. For more information, see the news release, Agencies Release Guidance and Proposed Revisions to Interagency Questions and Answers Regarding Flood Insurance, which was issued on October 14, 2011.
Statutes
The National Flood Insurance Program is administered under the following legislation:
- National Flood Insurance Act of 1968 and Flood Insurance Protection Act of 1973
- National Flood Insurance Reform Act of 1994
Contact Information
For more information, please contact Mark Johansen, FCA Senior Policy Analyst, at johansenm@fca.gov or 703-883-4064.