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 four other agencies (Federal Reserve Board, Federal Deposit Insurance Corporation, National Credit Union Administration, and the Office of the Comptroller of the Currency), issued a joint final rule (PDF) to implement provisions of the Biggert-Waters Flood Insurance Reform Act of 2012. These provisions require regulated institutions to accept certain private flood insurance policies. This rule will take effect on July 1, 2019.
For further guidance, see FAQs about flood insurance on our website.
News related to flood protection
- February 12, 2019: New rule covers private flood insurance (PDF) (joint news release)
- December 23, 2015: Limited suspension of enforcement actions relating to private flood insurance (PDF) (informational memorandum)
- March 29, 2013: Interagency statement on the impact of Biggert-Waters Act (PDF) (informational memorandum)
- The Federal Emergency Management Agency has revised its Standard Flood Hazard Determination form and changed the form number from 81-93 to 086-0-32. For more information, see the October 10, 2012, FEMA memorandum (PDF).
The National Flood Insurance Program is administered under the following legislation:
- National Flood Insurance Act of 1968 and Flood Insurance Protection Act of 1973 (PDF)
- National Flood Insurance Reform Act of 1994 (PDF)
For more information, please contact Paul Gibbs, senior accountant in the Office of Regulatory Policy, at [email protected].