Acceptance of Private Flood Insurance for FHA- Insured Mortgages

Status: Closed

Agency/Entity: Federal Housing Finance Agency (FHFA)

Docket/Identity #: [Docket No. FR–6084–P–01] RIN 2502–AJ43 

Deadline: 01/22/2021

Cuna Contact: Damon Smith

 This proposed rule would amend Federal Housing Administration (FHA) regulations to allow mortgagors the option to purchase private flood insurance on FHA-insured mortgages for properties located in Special Flood Hazard Areas (SFHAs), in satisfaction of the mandatory purchase requirement of the Flood Disaster Protection Act of 1973 (the FDPA). The FDPA, as amended, requires the owner of a property mapped in a SFHA, and located in a community participating in the National Flood Insurance Program, to purchase flood insurance as a condition of receiving a mortgage backed by the GSEs, VA, USDA, or FHA. 

CUNA submitted comments on January 22