§4012a Flood insurance purchase and compliance requirements and escrow accounts

The National Flood Insurance Act of 1968, referred to in subsecs. (a), (b), (d)(1), and (e)(1), and the Act, referred to in subsec. (b), is title XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, which is classified principally to this chapter (§ 4001 et seq.). For complete classification of this Act to the Code, see

note set out under section 4001 of this title and Tables. The Federal Financial Institutions Examination Council Act of 1974, referred to in subsec. (b)(1), probably means the Federal Financial Institutions Examination Council Act of 1978, Pub. L. 95–630, title X, Nov. 10, 1978, 92 Stat. 3694, which is classified principally to chapter 34 (§ 3301 et seq.) of Title 12, Banks and Banking. For complete classification of this Act to the Code, see

note set out under section 3301 of Title 12 and Tables. section 522(a) of Public Law 103–325, referred to in subsec. (b)(4)(C), was in original “section 522(a) of such Act”, which generally amended subsec. (b) of this section. This title, referred to in subsec. (e)(5)(B), (C), means title I of Pub. L. 93–234, Dec. 31, 1973, 87 Stat. 977, which enacted this section and section 4104 of this title and amended section 4001, 4013 to 4016, 4026, 4054, 4056, and 4121 of this title. Codification Section was enacted as part of the Flood Disaster Protection Act of 1973, and not as part of the National Flood Insurance Act of 1968 which comprises this chapter.

2014—Subsec. (c)(3). Pub. L. 113–89, § 13(a), added par. (3). Subsec. (d)(1)(A). Pub. L. 113–89, § 25(a)(1), substituted “subparagraph (B)” for “subparagraph (C)”. Subsec. (d)(1)(B). Pub. L. 113–89, § 25(a)(2), substituted “under subparagraph (A)—” for “under subparagraph (A) or (B), if—” in introductory provisions, designated existing provisions as cl. (i) and inserted “if—” after cl. (i) designation, redesignated former cls. (i) and (ii) as subcls. (I) and (II), respectively, of cl. (i), redesignated former subcls. (I) and (II) as items (aa) and (bb), respectively, of subcl. (II), and added cl. (ii). 2013—Subsec. (d)(1)(A). Pub. L. 112–281 inserted “residential” before “improved real estate” in two places. 2012—Subsec. (a). Pub. L. 112–141, § 100238(a)(1), substituted “Administrator” for “Director”. Subsec. (b)(1). Pub. L. 112–141, § 100239(a)(1), substituted “; and” for period at end, substituted “institutions—” for “institutions”, inserted subpar. (A) designation before “not to make”, and added subpar. (B). Pub. L. 112–141, § 100238(a)(1), substituted “Administrator” for “Director”. Subsec. (b)(2). Pub. L. 112–141, § 100239(a)(2), substituted “paragraph (1)(A)” for “paragraph (1)” in two places and inserted “Each Federal agency lender shall accept private flood insurance as satisfaction of the flood insurance coverage requirement under the preceding sentence if the flood insurance coverage provided by such private flood insurance meets the requirements for coverage under such sentence.” after first sentence. Pub. L. 112–141, § 100238(a)(1), substituted “Administrator” for “Director”. Subsec. (b)(3). Pub. L. 112–141, § 100239(a)(3), substituted “paragraph (1)(A). The Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation shall accept private flood insurance as satisfaction of the flood insurance coverage requirement under paragraph (1)(A) if the flood insurance coverage provided by such private flood insurance meets the requirements for coverage under such paragraph and any requirements established by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, respectively, relating to the financial solvency, strength, or claims-paying ability of private insurance companies from which the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation will accept private flood insurance.” for “paragraph (1).” in concluding provisions. Subsec. (b)(3)(A). Pub. L. 112–141, § 100238(a)(1), substituted “Administrator” for “Director”. Subsec. (b)(5) to (7). Pub. L. 112–141, § 100239(a)(4), added pars. (5) to (7). Subsec. (c)(1). Pub. L. 112–141, § 100238(a)(1), substituted “Administrator” for “Director” in two places. Subsec. (d)(1). Pub. L. 112–141, § 100238(a)(1), substituted “Administrator” for “Director”. Pub. L. 112–141, § 100209(a), amended par. (1) generally. Prior to amendment, text read as follows: “Each Federal entity for lending regulation (after consultation and coordination with the Financial Institutions Examination Council) shall by regulation require that, if a regulated lending institution requires the escrowing of taxes, insurance premiums, fees, or any other charges for a loan secured by residential improved real estate or a mobile home, then all premiums and fees for flood insurance under the National Flood Insurance Act of 1968 for the real estate or mobile home shall be paid to the regulated lending institution or other servicer for the loan in a manner sufficient to make payments as due for the duration of the loan. Upon receipt of the premiums, the regulated lending institution or servicer of the loan shall deposit the premiums in an escrow account on behalf of the borrower. Upon receipt of a notice from the Administrator or the provider of the insurance that insurance premiums are due, the regulated lending institution or servicer shall pay from the escrow account to the provider of the insurance the amount of insurance premiums owed.” Subsec. (e)(1). Pub. L. 112–141, § 100238(a)(1), substituted “Administrator” for “Director”. Subsec. (e)(2). Pub. L. 112–141, § 100244(a)(1), substituted “purchasing the insurance, including premiums or fees incurred for coverage beginning on the date on which flood insurance coverage lapsed or did not provide a sufficient coverage amount” for “purchasing the insurance”. Subsec. (e)(3). Pub. L. 112–141, § 100244(a)(3), added par. (3). Former par. (3) redesignated (5). Subsec. (e)(3). Pub. L. 112–141, § 100238(a)(1), substituted “Administrator” for “Director” wherever appearing. Subsec. (e)(4) to (6). Pub. L. 112–141, § 100244(a)(2), (3), added par. (4) and redesignated former pars. (3) and (4) as (5) and (6), respectively. Subsec. (f)(5). Pub. L. 112–141, § 100208, substituted “$2,000” for “$350” and struck out at end “The total amount of penalties assessed under this subsection against any single regulated lending institution or enterprise during any calendar year may not exceed $100,000.” Subsec. (h)(1)(B). Pub. L. 112–141, § 100238(a)(1), substituted “Administrator” for “Director”. 2008—Subsec. (f)(3)(A). Pub. L. 110–289 substituted “Director of the Federal Housing Finance Agency” for “Director of the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development”. 1994—Pub. L. 103–325, § 531, substituted section catchline for former section catchline. Subsec. (a). Pub. L. 103–325, § 582(c), struck out “, during the anticipated economic or useful life of the project,” before “covered by flood insurance” and inserted at end “The requirement of maintaining flood insurance shall apply during the life of the property, regardless of transfer of ownership of such property.” Subsec. (b). Pub. L. 103–325, § 522(a), amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: “Each Federal instrumentality responsible for the supervision, approval, regulation, or insuring of banks, savings and loan associations, or similar institutions shall by regulation direct such institutions not to make, increase, extend, or renew after the expiration of sixty days following December 31, 1973, any loan secured by improved real estate or a mobile home located or to be located in an area that has been identified by the Director as an area having special flood hazards and in which flood insurance has been made available under the National Flood Insurance Act of 1968, unless the building or mobile home and any personal property securing such loan is covered for the term of the loan by flood insurance in an amount at least equal to the outstanding principal balance of the loan or to the maximum limit of coverage made available with respect to the particular type of property under the Act, whichever is less.” Subsec. (c). Pub. L. 103–325, § 522(b), inserted heading, designated existing provisions as par. (1), inserted par. (1) heading, and added par. (2). Subsecs. (d) to (h). Pub. L. 103–325, §§ 523–526, added subsecs. (d) to (h). 1983—Pub. L. 98–181 substituted “Director” for “Secretary” wherever appearing.

of 2014 Amendment Pub. L. 113–89, § 25(b)(1), Mar. 21, 2014, 128 Stat. 1031, provided that: “(1) In general.—“(A) Required application.—The

of amendment by section 100209(a) of Pub. L. 112–141, see

of 2014 Amendment note above.

of 1994 AmendmentAmendment by section 582(c) of Pub. L. 103–325 applicable to disasters declared after Sept. 23, 1994, see section 5154a(e) of this title. Rule of

Pub. L. 113–89, § 25(b)(3), Mar. 21, 2014, 128 Stat. 1032, provided that: “Nothing in this section [amending this section and enacting and repealing provisions set out as notes under this section] or the

For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see section 315(a)(1) of Title 6, Domestic Security. For

, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and section 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6. Treatment of Floodproofed Residential Basements Pub. L. 113–89, § 21, Mar. 21, 2014, 128 Stat. 1028, provided that: “The Administrator [of the Federal Emergency Management Agency] shall continue to extend exceptions and variances for flood-proofed basements consistent with section 60.6 of title 44, Code of Federal