Answer:
The answer to this question depends on who you ask. Financial institutions have a unique perspective since the law requires that the LENDER is responsible for having adequate flood insurance in place for covered transactions. Lenders have been “deputized” to be the enforcers to help protect the federal government from extensive disaster relief payments. Regulators are required to examine financial institutions and enforce the regulations with the added incentive of civil money penalties. FEMA is charged with mapping the United States, producing manuals, oversight for participating communities, and working with the insurance industry and lenders. The insurance industry works with borrowers and lenders to provide coverage through various programs. Third party vendors provide flood determination services. Finally, Congress steps in periodically and changes the law.
-----------------------------
Learn more about Susan Costonis’s webinar Flood Insurance Fundamentals – Passing the next Compliance Exam
print
share