ABA in a letter Thursday urged federal regulators to update an invaluable document -- “Mandatory Purchase of Flood Insurance Guidelines” -- that bank compliance officers rely upon to guide their flood insurance compliance efforts.
The letter was prompted by a recent decision by the Federal Emergency Management Agency to rescind the guidelines, which the agency said had been made obsolete by the Biggert Waters Flood Insurance Reform Act.
“While it is true that the Biggert-Waters Act will require significant changes to the [NFIP] and to bank compliance with the mandatory purchase requirement, those changes call for an update of the Guidelines, not a unilateral decision to rescind an indispensable compliance resource,” ABA EVP Wayne Abernathy wrote.
Abernathy explained how important the guidelines are as a training and compliance tool, particularly at community banks, and he strongly urged the agencies to assume responsibility for updating and maintaining them.
Read ABA's letter.