Course description

Hurricanes.  Sea swells.  Rainstorms.  Snow melts.   Ice jams.  Any one of these things can cause flooding and substantial damage to your bank’s collateral and your customer’s property.  FEMA, the government agency that exists to help Americans through the worst emergencies, doesn’t have the ability or desire to foot the bill for every Act of God that wreaks havoc on the land.  So they require flood insurance to help manage the risk – through you, the friendly neighborhood banker.  You are in a unique position to require insurance that property owners might not otherwise obtain.  No insurance = no loan.  This is an effective motivator!

WHAT?

While you are motivating your borrower to obtain the right amount of insurance, bank examiners are motivating you to get it right, in the form of stringent rules and enforcement actions.  If you feel a bit unsure of these numerous complex rules, this webinar is for you!

Learn the foundational rules and requirements of the National Flood Insurance Program and how it is implemented through bank regulation.   You’ll come away with the “big picture” of what is needed, along with important details to make sure your program is indeed getting it right.

WHY?

Flood Civil Money Penalties!  As of 1/15/22, the penalty amount could be $2,392 per violation, with no cap!  That can add up quickly.  Some recent examples:  

  • December 2021, OCC: “Michigan Bank pays $3.6 million for flood insurance penalties”
  • January 2022, FDIC: “Blue Grass Savings Bank pays $16,500 for flood violations”
  • February 2022, FRB:  “First Midwest Bank pays $253,500 in flood insurance penalties”

Banks receive flood penalties All. The. Time.  Good, reputable banks.  Don’t let Flood CMPs become a “cost of doing business” in your bank.   You too, can prevent penalties by maintaining a strong flood program through knowledge and diligence.

Once flooding occurs, it is too late to prepare.  Take action now to learn, grow, and develop your program for success!

HOW?

This webinar will go over the foundational requirements for flood insurance, delve into key definitions and requirements, and explore tips to practically implement it in your institution. 

In addition to the webinar slides and a regulatory information, participants (you!) will receive helpful reference sheets and tools to help maximize comprehension. Upon completion of this 90 minute webinar participants will:

  • Get a succinct review of baseline flood insurance requirements
  • Learn how to not get tripped up over tripwires!
  • How not to get stuck in the MIRE of flood insurance
  • What exceptions apply
  • LOMCs, LOMAs, LOMRs, and LOMR-Fs:  huh?
  • What can be waived and how
  • Construction, condos and townhomes – special handling required 
  • Multiple buildings, multiple policies?
  • Buildings that would be better off swept away – worthless / low value buildings
  • Manufactured homes – the attachment issue
  • Determination fees and the Finance Charge issue
  • Ensuring proper coverage amount
  • Insurable Value
  • Ensuring proper evidence of insurance
  • Contents coverage – not to be overlooked!
  • Private policies – a whole new world
  • Escrowing
  • Force-placement
  • Current status of Interagency Flood Q&As
  • The all important “Kill Switch” that should be bestowed to every employee

 

Instructor(s)

Rebekah Leonard

Rebekah F Leonard, CRCM is the Director of Compliance for a $6 Billion community bank in Montana, as well as the owner of Elucidate, LLC, a compliance training company based in Miles City, Montana. Rebekah has been in the finance and banking industry since 1995, beginning in private-lending before settling into banking, where she’s covered nearly all of it – from customer service and teller work, to loan processing and review, to security & business continuity, to ultimately overseeing CRA, BSA and all aspects of compliance as a senior leader. She has successfully navigated numerous FDIC Compliance, CRA, and BSA Exams. Rebekah has a bachelor’s degree in Organizational Leadership from Chapman University (Magna cum Laude), attended the American Bankers Association National Compliance School in 2003, and has held her Certified Regulatory Compliance Manager designation since 2006. She actually likes compliance (really!) and enjoys sharing her passion of it with others.

Course curriculum

  • 1

    Webinar

    • Access Webinar

Reviews