The Federal Housing Administration said it will accept private flood insurance policies in which the borrower chooses to obtain a private policy instead of flood insurance available through the National Flood Insurance Program, effective Dec. 21.
FHA now accepting private flood insurance
November 22, 2022 / By ICBA
The Federal Housing Administration said it will accept private flood insurance policies in which the borrower chooses to obtain a private policy instead of flood insurance available through the National Flood Insurance Program, effective Dec. 21.
The Federal Housing Administration said it will accept private flood insurance policies in which the borrower chooses to obtain a private policy instead of flood insurance available through the National Flood Insurance Program, effective Dec. 21.
Details: In a final rule, the FHA updated its regulations to allow borrowers to purchase a comparable private insurance policy that meets FHA requirements in lieu of an NFIP policy for FHA-insured mortgages secured by properties located in Federal Emergency Management Agency-designated Special Flood Hazard Areas.
More: This change applies to all FHA-insured Single Family Title II mortgages, including Home Equity Conversion Mortgages, and loans insured under FHA’s Title I programs. The FHA also issued Mortgagee Letter 2022-18 with guidance to help institutions implement the policy change.
Subscribe now
Sign up for the Independent Banker newsletter to receive twice-monthly emails about new issues and must-read content you might have missed.
Sponsored Content
Featured Webinars
Join ICBA Community
Interested in discussing this and other topics? Network with and learn from your peers with the app designed for community bankers.
Subscribe Today
Sign up for Independent Banker eNews to receive twice-monthly emails that alert you when a new issue drops and highlight must-read content you might have missed.
News Watch Today
Join the Conversation with ICBA Community
ICBA Community is an online platform led by community bankers to foster connections, collaborations, and discussions on industry news, best practices, and regulations, while promoting networking, mentorship, and member feedback to guide future initiatives.
Join the Community Example Text
