FEMA has made several underwriting and MPFIG changes in an effort to ease the financial burden on borrowers whose properties are newly designated in a Special Flood Hazard Area when a community's Flood Insurance Rate Maps are revised. Effective January 1, 2011 affected property owners that otherwise qualify may purchase, for up to two years, the lower cost PRP coverage. The below linked memorandum was published by FEMA in concert with various financial institution regulators on September 14, 2010. The letter and its three attachments outline mandated changes to Write Your Own insurance companies' and federally regulated lenders' flood insurance procedures.
Please contact your marketing or client services representative at The Assurance Group, Inc. with any questions you may have.
This is a link to the above referred memorandum - Guidance for Lenders: Preferred Risk Policy (PRP) 2-Year Extension
This is a link to the related FDIC Financial Institution Letter - FIL-86-2010