The Federal Reserve Board, together with the Farm Credit Administration, Federal Deposit Insurance Corporation, National Credit Union Administration and Office of the Comptroller of the Currency, issued a reminder that lenders may continue to make loans subject to the federal flood insurance statutes when the National Flood Insurance Program (NFIP) is not available, and may do so without requiring federal flood insurance during the lapse period. Institutions are expected to continue making flood determinations, provide timely, complete and accurate notices to borrowers, and comply with other applicable parts of the flood insurance regulations, consistent with the Interagency Questions and Answers Regarding Flood Insurance (Q&A Applicability 12). Lenders are also encouraged to evaluate safety and soundness and legal risks and manage those risks prudently during any lapse, and the interagency guidance addresses the availability and use of private flood insurance.

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