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<br />EXCERPTS FROM THE COMPTROLLER'S MANUAL FOR COMPLIANCE, <br />COMPTROLLER OF THE CURRENCY <br /> <br />Consumer Activities <br /> <br />Other Consumer -~Tier I <br /> <br />13. If the bank has failed to ob~ain or maintain the required flood <br />insurance, and it is determined that this is a pattern or practice, <br />require the bank to review its REM portfolio and obtain the necessary <br />flood insurance coverage. Insurance premiwns will either be paid for <br />by the bank or the borrower. The determination as to who will pay is <br />a legal issue and is based on the language in the note/contract with <br />the borrower on payment of premiums for hazard insurance. <br /> <br />14. Determine if the bank is unilaterally making elevation determinations <br />and not requiring flood insurance based on those determinations. The <br />Flood Insurance Agency is the only authorized office that can make <br />elevation determinations and issue a Letter of Map Revision or Letter <br />of Map Adaendment. Onti1 an official determination is made, flood <br />insurance is required. <br /> <br />15. If the bank makes a loan on multiple structures in a SFHA and the <br />structures are ineluded aR coll.tAra! for ~@ loan, ensure each <br />structure is covered by flood insurance even though the value of one <br />structure may be sufficient to cover the loan amount <br /> <br />16. Complete the Flood Disaster Protection Act worksheet (be sure to pull <br />files which include loans in flood prone areas) to assess the bank's <br />level of compliance with the requirements of 12 CFR 22. <br /> <br />NOTE: For equity lines of credit, coverage is normally required in <br />the amount of the line of credit unless the bank has a system to <br />purchase flood insurance on disbursements. <br /> <br />,9, <br />