NCUA Guidance on Lapse of FEMA’s Authority to Issue Flood Insurance Contracts


Recently the Federal Reserve Board (FRB) issued a statement on financial institutions issuing loans when the National Flood Insurance Program is unavailable.

Credit unions would also want to look at previous guidance issued by the National Credit Union Administration (NCUA) in Letter to Credit Unions 10-CU-08.  The guidance applied to the 2010 lapse of FEMA’s authority to issue flood insurance contracts, and applies to any future lapses in the NFIP.

When the NFIP is not available, credit unions may continue to make loans subject to the Flood Act without flood insurance.  This is not considered a violation of Part 760, but lenders must continue to make flood determinations, provide timely, complete, and accurate notices to borrowers, and comply with other parts of the flood insurance regulations.   In addition, they must evaluate safety and soundness and legal risks and prudently manage those risks during the lapse period.

Question of the Week

Do we have to post insured-status signage at each teller window and at non-teller drive-through kiosks?

No. Credit unions are required to post official NCUA signage at each teller station window where insured account funds or deposits are normally received. However, this does not include ATMs or point-of-sale (POS) terminals. Extended non-teller windows are considered POS terminals. Therefore, NCUA signage is not required at extended non-teller drive-through kiosks.

Similarly, state chartered, privately insured credit unions are required to provide notices stating: “This institution is not federally insured.” This requirement is found in the Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA) 12 U.S.C. §1831t(b) and (c). The notices must be displayed in the same locations as those for federally insured credit unions, as indicated above, including the exclusions for ATMs and POS terminals.

Related Links:

12 CFR 740.4

12 U.S.C. 1831t(b)

Legal Briefs

National Credit Union Administration (NCUA)

The NCUA updated its website.

Federal Reserve Board (FRB)

The FRB and other federal bank regulatory agencies issued a statement on financial institutions issuing loans when the National Flood Insurance program is unavailable. The press release points to guidance that was issued in 2010, which explained that lenders may continue to make loans subject to the federal flood insurance statutes without flood insurance during the period when the NFIP is not available. For reference NCUA Letter to Credit Unions 10-CU-08.

Consumer Financial Protection Bureau (CFPB)

The CFPB announced policy guidance on disclosure of HMDA data. The policy guidance describes how the CFPB will modify HMDA data prior to making it available to the public.

The CFPB released the annual adjustment to the HMDA Asset-Size exemption threshold. The adjustment raises the exemption threshold to financial institutions with $46 or less.

The CFPB announced that the filing period for HMDA data collected in 2018 opened on Jan. 1. Credit unions can access the HMDA Platform to begin the filing process for data collected in 2018 at

Office of Foreign Assets Control (OFAC)
OFAC has updated the SDN list as of Dec. 19, 2018. The last update prior to this was Dec. 14, 2018.

Questions? Contact the Compliance Hotline: 1.800.546.4465;

Posted in Compliance News.