HUD: FHA INFO #20-87: Private Flood Insurance Proposed Rule in Federal Register
November 23, 2020
Today, the Federal Housing Administration (FHA) published a proposed rule in the Federal Register (FR), Acceptance of Private Flood Insurance for Federal Housing Administration (FHA)-Insured Mortgages (Docket No. FR-6084-P-01). Initially announced in FHA INFO 20-83 and posted on the Single Family Housing Drafting Table, the proposed rule will provide the option for private flood insurance on FHA-insured single family mortgaged properties located in Special Flood Hazard Areas.
The proposed rule amends FHA regulations to allow borrowers the option to purchase private flood insurance to satisfy the mandatory flood insurance requirement of the Flood Disaster Protection Act of 1973 (FDPA). Additionally, it promotes consistency with industry standards and reduces the regulatory restrictions on flood insurance for FHA-insured single family loans.
Interested stakeholders are encouraged to review and provide comments on the private flood insurance proposed rule in a timely manner. Comments must be submitted using the methods outlined in the Federal Register posting not later than January 22, 2021.
• View Federal Register Notice (Docket No. FR-6084-P-01) at: https://www.federalregister.gov
• View the Acceptance of Private Flood Insurance for FHA-Insured Mortgages Proposed Rule on the Single Family Housing Drafting Table at: https://www.hud.gov/program_offices/housing/sfh/SFH_policy_drafts