BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D.C.  20551

DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS

CA 03-2
References CA 02-13

January 14, 2003

TO THE OFFICERS AND MANAGERS OF SUPERVISION AND THE OFFICERS AND MANAGERS IN CHARGE OF CONSUMER AFFAIRS SECTIONS:

RE: Reauthorization of the National Flood Insurance Program (NFIP), retroactive to December 31, 2002

The authority of the Federal Emergency Management Agency (FEMA) to issue flood insurance policies expired on December 31, 2002, after the Congress adjourned without extending FEMA's issuance authority. On December 20, 2002, the federal financial institution regulatory agencies jointly issued interim guidance to assist borrowers and lenders in dealing with questions about what to do during the lapse.

      On January 13, 2003, President Bush signed the National Flood Insurance Program Reauthorization Act into law. The Act extends the authorization of the NFIP to December 31, 2003, retroactive to December 31, 2002.

      Please inform the state member banks in your district of the reauthorization of the NFIP. For reference, additional information can be found on the websites listed below.

      If you have any questions, please contact the review examiner for your district.

Sincerely,
(signed)

Shawn McNulty
Associate Director

Interagency Guidance on Lapsed NFIP (Board press release of December 23, 2002) http://www.federalreserve.gov/boarddocs/press/bcreg/2002/20021223/default.htm

President Signs Reauthorization Bill (White House press release of January 13, 2003) http://www.whitehouse.gov/news/releases/2003/01/20030113-7.html

Flood Insurance Program Fully Reauthorized (FEMA press release of January 13, 2003) http://www.fema.gov/nwz03/nwz03_011.shtm