FDPA: Force Placing Flood Insurance

If you are new to flood insurance compliance, it doesn’t take long to realize that it’s complicated. There are determinations to pull, notices to give, calculations to make, and monitoring to do. And, you want to get it right because there’s always a potential threat of civil money penalties.

We received the following question about the force placement process at our April Monthly Connection:

We have a borrower whose flood insurance policy renewed yesterday, but the insurance company hasn't received the payment yet. Our borrower has indicated the payment was sent prior to the policy expiration date. Per the insurance company, there is a 30-day grace period before the policy would be terminated. Should we start the force placement process now or wait until closer to the end of the grace period?

Listen to David’s answer in the video.

 

FDPA Resources!

 

Published 
2022/04/19
David Dickinson

David Dickinson

David’s banking career began as a field examiner for the FDIC in 1990. He later became a Compliance Officer and Loan Officer for a small bank. In 1993, he established Banker’s Compliance Consulting. Along with his amazingly talented Team, he has written numerous compliance articles for prestigious banking publications and has developed compliance seminars that Banker’s Compliance Consulting produces.

He is an expert in compliance regulations. He is also a motivational speaker and innovative educator. His quick wit and sense of humor transforms the usually tiring topic of compliance into an enjoyable educational experience. David is on the faculty of the American Bankers Association National Compliance Schools and has served on the faculty of the Center for Financial Training for many years. He also is a frequent speaker at the ABA’s Regulatory Compliance Conference. He is also a trainer for hundreds of webinars, is a Certified Regulatory Compliance Manager (CRCM) and has been a BankersOnline Guru for many years. The American Bankers Association honored David with their Distinguished Service Award in 2016.

David and his wife Karen have three adult children, four grandchildren (none of whom live at home!) and two cats (of which Dave is allergic … the cats, not the children!). They recently moved to an acreage outside of Lincoln, Nebraska where he gets to play with his tractor. When possible David can be found fishing, making sawdust in his shop, or playing the guitar and piano. He also enjoys leading worship at his church.

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