BOARD OF GOVERNORS
DIVISION OF CONSUMER
March 29, 2010
TO THE OFFICERS AND MANAGERS IN CHARGE OF CONSUMER AFFAIRS SECTIONS
SUBJECT: Lapse of FEMA's Authority to Issue Flood Insurance Contracts
The authority of the Federal Emergency Management Agency (FEMA) to issue flood insurance contracts under the National Flood Insurance Program (NFIP) lapsed at midnight on March 28, 2010. The attached informal guidance provides information on issues that may arise during a period of lapsed authorization for lenders and borrowers concerning loans that are or will be secured by property located in a Special Flood Hazard Area. This guidance applies to this current lapse period and will continue to apply if there are any future lapses in the NFIP.
Please distribute this letter and attachment to supervised institutions in your district. If you have any questions, please contact either Lanette Meister, Senior Supervisory Consumer Financial Services Analyst, at (202) 452-2705 or Paul Robin, Manager, Oversight and Policy, at (202) 452-3140.