It can be hard to keep up to date with compliance changes in the lending world. Underwriting changes in the National Flood Insurance Program can cause changes that also impact the lender placement of insurance?
Are you up to date with changes? Do you know what the Homeowners Flood Insurance Affordability Act (HFIAA) is all about? A couple of points to remember:
Rate are increasing for some risk, but there are annual limits to percentage rate increases.
The Federal Policy Fee increased this year for properties in SFHA’s on the standard policy, but not on the PRP. No changes to lender place insurance.
New deductible options are now available for borrowers in the NFIP. Additional options are coming for lender placement.
The NFIP will be adding inserts with updates on rate changes, increased fees, and other changes in renewals and billing notices for borrowers. This could generate some questions to Lender and a slight increase in lender placements.