New Flood Insurance Requirements
NAFCU released the Third/Fourth Quarter 2015 issue of the Federal Reserve`s Consumer Compliance Outlook. The issue covered the Final Rule for New Flood Insurance Requirements. Here is a list from NAFCU of what loans and lenders are exempt from the new flood insurance requirements:
•The loan is primarily for business, commercial, or agricultural purposes;
•The loan is in a subordinate position to a senior lien secured by the same residential improved real estate or mobile home for which the borrower has obtained flood insurance coverage.
•The flood insurance coverage is provided by a policy that meets the requirements of 760.3(a) and is provided by a condominium association, cooperative, homeowners association, or other applicable group as a common expense;
•The loan is a home equity line of credit;
•The loan is a nonperforming loan that is 90 or more days past due; or
•The loan is a term of less than 12 months.
If you have compliance questions regarding this rule, chat with one of our client service representatives today. Read more about how Oak Tree Business Systems, Inc`s. home equity lending packages can help your credit union.
Cyber Incident Detection & Response Webinar
Register for NAFCU’s webinar on February 2 that will discuss your credit union`s IT security, methods to identify incidents, and how to structure a response plan.