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<br />~ <br /> <br />EXCERPTS FROM THE COMPTROLLER'S MANUAL FOR COMPLIANCE, <br />COMPTROLLER OF THE CURRENCY <br /> <br />l <br /> <br />I <br /> <br />Consumer Activities Other Consumer <br />Tier I <br />Flood Disaster Protection Act (Section 206 -- Consumer Handbook) <br /> <br />7. Determine whether any of the communities in the institution's trade <br />area have designated flood areas, and whether any of the communities <br />are participating in the National Flood Insurance Program. To <br />determine whether a community has been identified as flood prone and <br />eligible for participation in the NFIP or to obtain the date of the <br />current flood map, call the regional FEKA office. (See Appendix <br />505.206.2 in the Consumer Handbook for a list of FEKA regional offices <br />and phone numbers). <br /> <br />8. Review the institution's written and informal policies and internal <br />controls concerning flood insurance, particularly the method used by <br />the institution to make the flood hazard determination. As <br />appropriate, interview bank personnel to determine whether these <br />policies are implemented in the prescribed manner. <br /> <br />9. If the bank uses outside providers for flood zone identification, <br />determine how the bank ensures the accuracy of the data provided. <br />This includes appraisers, internally or externally, that make location <br />of property determinations for flood. <br /> <br />10. Obtain and review copies of: <br /> <br />a. All records and other information (Le., flood maps and appraisal <br />forms) used to determine whether improved real estate or mobile <br />homes are located in flood hazard areas. Check the records to <br />determine whether they are up-to-date. If the institution uses <br />flood maps, verify that the institution has a flood map for each <br />community in the trade area. <br /> <br />b. Written notices (forms) that inform borrowers that the property <br />securing a loan is in a flood hazard area and whether or not <br />federal disaster relief assistance will be available if the <br />property is damaged by flooding (refer to sample notices in <br />section 206.5 of Consumer Handbook). <br /> <br />c. Written acknowledgements from borrowers, indicating their <br />understanding that the property securing the loan is or will be <br />located in a flood hazard area and that they have received the <br />notice regarding the availability of federal disaster relief <br />assistance. <br /> <br />11. Review an adequate sample of loan files to ascertain that the <br />institution's stated method of determining whether loans secured by <br />improved real estate or mobile homes located in flood hazard areas is <br />followed. (12 CFR 22.5) <br /> <br />12. Review porcedures for handling flood insurance renewal notices for <br />REMs to ensure the poliCies are in effect during the life of the loan. <br /> <br />,8, <br />