Description
This webinar includes feedback from institutions like yours from our recent Executive Briefing and provides attendees with a comprehensive discussion of the implications of these two different but associated risk areas. Since our focus is on how risk managers can help their institutions avoid unnecessary punitive fees and losses, we will not be covering detailed compliance with specific flood regulations.
Background
According to FEMA, a flood event is more likely to occur than a fire. Yet fire insurance is readily available and flood insurance is not. It took government action in 1968 to set up a flood insurance program, the National Flood Insurance Program (NFIP), administered by the Federal Emergency Management Agency (FEMA), to bring insurance to market for this growing risk to property owners. The NFIP requires borrowers to purchase flood insurance when their properties fall within a Special Flood Hazard Area (SFHA). However, lenders are not required to have borrowers purchase flood insurance if the properties securing loans are not in an SFHA.
Our focus for this important webinar is the primary financial risks that financial institutions must address: (1) the risk of non-compliance with the NFIP; and (2) the risk of loan default among those borrowers whose properties are not required to be covered by flood insurance.
Benefits
This webinar includes feedback from institutions like yours from our recent Executive Briefing and provides attendees with a comprehensive discussion of the implications of these two different but associated risk areas. Since our focus is on how risk managers can help their institutions avoid unnecessary punitive fees and losses, we will not be covering detailed compliance with specific flood regulations.
Participate so you can:
• Understand the risk of non-compliance with the NFIP including the increased enforcement cost of non-compliance that has resulted from the Biggert-Waters Flood Insurance Reform Act of 2012 and the implications for internal changes to regulatory compliance policies and procedures needed to avoid a “pattern or practice” of violating any of the statutory requirements subject to civil monetary penalties.
• Assess the risk implications related to loan defaults among those borrowers whose properties are not required to be covered by flood insurance. If a flood event occurs, this risk focuses on borrowers who may decide that they cannot afford to pay for renovating or rebuilding their properties despite federal disaster assistance programs. These borrowers could choose to default on their loans instead of taking a more lengthy and costly path of seeking federal assistance.
• Stimulate thinking about the types of financial risks your institution could experience related to flood insurance.
• Provide your institution with the opportunity for your financial risk concerns to be discussed in the Q&A session.
Who Should Attend
• Compliance managers
• Risk managers
• Lenders
• Executives