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<br />CLARIFICATIONS TO RECORDKEEPING REQUIREMENTS, JANUARY 20,1990, <br />FEDERAL DEPOSIT INSURANCE CORPORATION <br /> <br />FDIC <br />FecIIrIl Deposit lneunmce COrporation <br />WMhlngton, D.C. Z0429-9ll1lO <br /> <br />Office of Consumer "Ifelrs <br />(202) Il98-3538 <br />(800) 424-5488 <br /> <br />FIIr9-90 <br />January 26, 1990 <br /> <br />FlOOD INSURANCE <br /> <br />ID: CHIEF EXECm'IVE OFFICER <br />AND <nIPLIANCE OFFICER <br /> <br />SUBJECl': RevisEd FEMA Guidelines <br />Clarifications to Recom1<""""1m Realli.........m-_.. <br /> <br />the Federal Elrergency Management ~ (FEMA) recently issued the <br />enclosed booklet containin;1 new guidelines on the marrlato:ry purchase of <br />flood insurance for certain loans. 'lhe new guidelines replace those <br />originally plblished in 1974 ani revised in 1978 ani 1980. Please review <br />the information in this plblication for possible applicability to your <br />institution. <br /> <br />In addition, we \oIOUl.d like to clarify related recordkeep~ requirements <br />of Section 339.5 of the FDIC's Rules ani Regulations. To ensure <br />corrplianoe with the National Flood Insuraooe Act of 1968 ani the Flood <br />Disaster Protection Act of 1973, FDIC-supeIVised financial institutions <br />are expected to maintain sufficient records in:1icat~ the method used to <br />detennine whether "inproved real estate or a m:i:lile hane" offered as <br />security for a loan is located in a Special Flood Hazard Area. SUch <br />records incl\X1e copies of official maps, or reference to specific maps by <br />rnnnber, ani written contracts betlNeen the institution ani the appraiser <br />who performed the flood check. <br /> <br />Financial institutions also are expected to retain copies of the notices <br />provided to the borrt7#ler ani the written acknowl~t of receipt. If <br />flood insurance is required, a copy of the insurance policy also should be <br />retained. Institutions are urge:i to in:1icate in their records that a <br />flood hazard check has been performed on the prqlE!rty. SUCh a notation <br />may be placed on the appraisal fom or elsewhere in the loan application <br />or loan docket file. <br /> <br />If you have any questions, please oontact your FDIC Regional Office. <br /> <br />Enclosure <br /> <br />~m.~ <br /> <br />Janice M. Smith <br />Director <br /> <br />Distril:lution: <br /> <br />FDIC-SUpeIvisEd Institutions (Camercial ani savin3s) <br /> <br />-20, <br />