Flood disaster protection
This page provides links to information to help Farm Credit System lenders understand rules on flood insurance.
By law, System institutions 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 Office of the Comptroller of the Currency), has issued interagency regulations to implement the flood insurance laws. FCA's flood insurance regulations, which were last updated in 2015, are found at part 614, subpart S.
On May 11, 2022, FCA and the four agencies listed above released revised final interagency questions and answers (Q&As) that provide guidance on the interagency flood insurance regulations. These Q&As were published in the Federal Register (87 FR 32826 [PDF]) on May 31, 2022.
News related to flood protection
- May 11, 2022: Agencies Release Revised Interagency Questions and Answers Regarding Flood Insurance (PDF) (joint news release)
- May 4, 2020: Flood insurance requirements (PDF), a supplement to the FCA informational memorandum providing guidance for System institutions affected by the COVID-19 pandemic
- February 12, 2019: New rule covers private flood insurance (PDF) (joint news release)
The National Flood Insurance Program is administered under the following legislation:
- National Flood Insurance Act of 1968 and Flood Disaster Protection Act of 1973 (PDF)
- National Flood Insurance Reform Act of 1994 (PDF)
- Flood Insurance Reform Act of 2004 (PDF)
- Biggert-Waters Flood Insurance Reform Act of 2012 (PDF) (Text begins on page 512.)
- National Flood Insurance Program and the Consolidated Appropriations Act of 2014 (PDF), a FEMA fact sheet
- Homeowners Flood Insurance Affordability Act of 2014 (PDF)
For more information, please contact Ira Marshall, Senior Policy Analyst, Office of Regulatory Policy, at [email protected] or Jennifer Cohn, Assistant General Counsel, Office of General Counsel, at [email protected].