Recordkeeping and Disclosure Requirements Associated with Loans Secured by Real Estate Located in Flood Hazard Areas Pursuant to Section 208.25 of Regulation H

ICR 201906-7100-004

OMB: 7100-0280

Federal Form Document

Forms and Documents
Document
Name
Status
Supporting Statement A
2019-06-18
ICR Details
7100-0280 201906-7100-004
Active 201906-7100-002
FRS FR H-2
Recordkeeping and Disclosure Requirements Associated with Loans Secured by Real Estate Located in Flood Hazard Areas Pursuant to Section 208.25 of Regulation H
Revision of a currently approved collection   No
Delegated
Approved without change 06/18/2019
Retrieve Notice of Action (NOA) 06/18/2019
  Inventory as of this Action Requested Previously Approved
06/30/2022 36 Months From Approved 06/30/2019
523,285 0 507,381
34,551 0 30,575
0 0 0

In general, the federal flood insurance statutes and Regulation H - Membership of State Banking Institutions in the Federal Reserve System (12 CFR 208) provide that a lender shall not make, increase, extend, or renew a loan secured by a building or mobile home located in a special flood hazard area unless the secured property is covered by flood insurance for the term of the loan. With respect to the recordkeeping and disclosure provisions, the regulation requires state member banks to: • retain a completed copy of the Standard Flood Hazard Determination Form developed by the Federal Emergency Management Agency (standard FEMA form). The form is used by lenders to document their determination of whether improved property securing a loan is in a special flood hazard area, • notify a borrower and servicer when loans secured by improved property are determined to be in a special flood hazard area and retain a record of receipt of the notice, • notify a borrower of a loan secured by residential improved property or a mobile home that the state member bank is required to escrow all premiums and fees for required flood insurance when the bank makes, increases, extends, or renews the loan. For loans secured by residential improved property or a mobile home that were outstanding on January 1, 2016, or July 1 of the first year in which the bank loses its exception from the escrow requirement, the state member bank must mail or deliver information on the option to escrow flood premiums and fees, • notify a borrower of the borrower’s obligation to obtain flood insurance if the lender determines at any time during the term of the loan that the improved property securing the loan is not covered by adequate flood insurance. If the borrower fails to obtain the flood insurance within 45 days of this notification, the state member bank or its servicer must purchase insurance and may charge the borrower for the cost of the premiums. If the state member bank receives confirmation of a borrower’s existing flood insurance coverage after it has force placed insurance on behalf of the borrower, the bank or its servicer shall notify the insurance provider to terminate any insurance purchased by the bank or its servicer, and • notify the Federal Emergency Management Agency (FEMA) of the identity of, and any change in, the servicer of a loan secured by improved property in a special flood hazard area. The information collection requirements under the flood hazard provisions of Regulation H are triggered by specific events in the lending process.

US Code: 42 USC 4012a Name of Law: Flood Disaster Protection Act of 1973
   US Code: 42 USC 4104a Name of Law: National Flood Insurance Act of 1968
   US Code: 12 USC 321 Name of Law: Federal Reserve Act
   US Code: 12 USC 248(i) Name of Law: Federal Reserve Act
  
PL: Pub.L. 112 - 141 126 Name of Law: Biggert-Waters Flood Insurance Reform Act of 2012

7100-AE22 Final or interim final rulemaking 84 FR 4953 02/20/2019

  81 FR 78063 11/07/2016
84 FR 4953 02/20/2019
No

  Total Approved Previously Approved Change Due to New Statute Change Due to Agency Discretion Change Due to Adjustment in Estimate Change Due to Potential Violation of the PRA
Annual Number of Responses 523,285 507,381 15,904 0 0 0
Annual Time Burden (Hours) 34,551 30,575 3,976 0 0 0
Annual Cost Burden (Dollars) 0 0 0 0 0 0
No
No
The Office of the Comptroller of the Currency (OCC), the Board, the Federal Deposit Insurance Corporation (FDIC), the Farm Credit Administration (FCA), and the National Credit Union Administration (NCUA) (collectively, the agencies) have amended their regulations regarding loans in areas having special flood hazards to implement the private flood insurance provisions of the Biggert-Waters Flood Insurance Reform Act of 2012 (Biggert-Waters Act). Specifically, the final rule requires regulated lending institutions to accept policies that meet the statutory definition of “private flood insurance” in the Biggert-Waters Act and permits regulated lending institutions to exercise their discretion to accept flood insurance policies issued by private insurers and plans providing flood coverage issued by mutual aid societies that do not meet the statutory definition of “private flood insurance,” subject to certain restrictions. The FR H 2 has been revised to add new recordkeeping requirements for the private flood insurance. The final rule is effective on July 1, 2019.

$0
No
    No
    No
No
No
No
Uncollected
Lois Lawrence 202-452-2984 Lois.D.Lawrence@frb.gov

  No

On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
 
 
 
 
 
 
 
    (i) Why the information is being collected;
    (ii) Use of information;
    (iii) Burden estimate;
    (iv) Nature of response (voluntary, required for a benefit, or mandatory);
    (v) Nature and extent of confidentiality; and
    (vi) Need to display currently valid OMB control number;
 
 
 
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
06/18/2019


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