have no obligation under this title to require the
purchase of flood insurance on the property.’’.
(b) APPLICABILITY.—
(1) IN GENERAL.—Except as provided in para-
graph (2), section 102(e) of the Flood Disaster Pro-
tection Act of 1973, as added by subsection (a),
shall apply to all loans outstanding on or after the
date of enactment of this Act.
(2) LOANS REGULATED BY THE FARM CREDIT
ADMINISTRATION.—Notwithstanding paragraph (1),
with respect to loans held by institutions regulated
by the Farm Credit Administration, section 102(e)
of the Flood Disaster Protection Act of 1973, as
added by subsection (a), shall apply only to loans
originating on or after the date of enactment of this
Act.
SEC. 205. STANDARD FLOOD HAZARD DETERMINATION
FORMS.
(a) IN GENERAL.—Chapter III of the National Flood
Insurance Act of 1968 (42 U.S.C. 4101 et seq.) is amend-
ed by adding at the end the following new section:
‘‘SEC. 1365. STANDARD FLOOD HAZARD DETERMINATION
FORMS.
‘‘(a) DEVELOPMENT.—The Director, in consultation
with the Federal entities for lending regulation, and after
notice and comment, shall develop a standard flood hazard
determination form (hereafter in this section referred to
as the ‘determination form’) for use in connection with
loans secured by improved real estate or a manufactured
home located in an area having special flood hazards and
in which flood insurance is available under this title. The
determination form may be maintained in a printed, com-
puterized, or electronic manner.
‘‘(b) DESIGN AND CONTENTS.—The determination
form shall state whether the property is in an area having
special flood hazards, the risk premium rate classification
established for the special flood hazard area in which the
property is located, the complete map and panel numbers
for the property, and the date of the map used for the
determination. If the complete map and panel numbers for
the property are not available because the property is not
located in a community that is participating in the Na-
tional Flood Insurance Program or because no map exists
for the relevant area, the determination form shall so
state.
‘‘(c) REQUIRED USE.—Each Federal entity for lend-
ing regulation shall by regulation require the use of the
determination form by regulated lending institutions.
Each Federal agency lender shall by regulation provide for
the use of the determination form. The Federal National
Mortgage Association, the Federal Home Loan Mortgage
Corporation, and the Federal Agricultural Mortgage Cor-
poration shall require use of the determination form by
any person from whom they purchase loans.
‘‘(d) GUARANTEES REGARDING INFORMATION.—In
recording information on a determination form, a person
may rely on information provided by a third party to the
extent that the third party guarantees the accuracy of the
information.
‘‘(e) RELIANCE ON PREVIOUS DETERMINATION.—A
person or institution increasing, extending, renewing, or
purchasing a loan may rely on a previous determination
as to whether property is in an area having special flood
hazards, if the previous determination was made not more
than 5 years before the date of the transaction, and the
basis for the previous determination has been set forth on
a determination form.’’.
(b) APPLICABILITY.—Section 1365 of the National
Flood Insurance Act of 1968, as added by subsection (a),
shall apply to all loans originated on or after the expira-
tion of the 6-month period beginning on the date the
standard flood hazard determination form is finalized by
the Director.
SEC. 206. EXAMINATIONS REGARDING COMPLIANCE BY
REGULATED LENDING INSTITUTIONS.
(a) AMENDMENT TO FEDERAL DEPOSIT INSURANCE
ACT.—Section 10 of the Federal Deposit Insurance Act
(12 U.S.C. 1820) is amended by adding at the end the
following new subsection:
‘‘(h) FLOOD HAZARD INSURANCE COMPLIANCE BY
INSURED DEPOSITORY INSTITUTIONS REQUIRED.—
‘‘(1) EXAMINATIONS.—The appropriate Federal
banking agency shall, during each scheduled on-site
examination required by this section, determine
whether the insured depository institution is comply-
ing with the requirements of the National Flood
Insurance Program.
‘‘(2) REPORT.—Not later than 1 year after the
date of enactment of the National Flood Insurance
Program Improvement Act of 1994, and biannually
thereafter for the next 4 years, each appropriate
Federal banking agency shall submit a report to the
Congress on compliance by insured depository insti-
tutions with the requirements of the National Flood
Insurance Program. The report shall include a de-
scription of the methods used to determine compli-
ance, the number of institutions examined during
the reporting year, a listing and total number of in-
stitutions found to be in noncompliance, actions
taken to correct incidents of noncompliance, and an
analysis of compliance, including a discussion of any
trends, patterns, and problems, and recommenda-
tions regarding reasonable actions to improve the ef-
ficiency of the examinations processes.’’.
(b) AMENDMENT TO THE FEDERAL CREDIT UNION
ACT.—Section 204 of the Federal Credit Union Act (12
U.S.C. 1784) is amended by adding at the end the follow-
ing new subsection:
‘‘(e) FLOOD HAZARD INSURANCE COMPLIANCE BY
INSURED CREDIT UNIONS REQUIRED.—
‘‘(1) EXAMINATION.—The Board shall, during
each examination conducted under this section, de-
termine whether the insured credit union is comply-
ing with the requirements of the National Flood
Insurance Program.
‘‘(2) REPORT.—Not later than 1 year after the
date of enactment of the National Flood Insurance
Program Improvement Act of 1994, and biannually
thereafter for the next 4 years, the Board shall sub-
mit a report to the Congress on compliance by in-
sured credit unions with the requirements of the Na-
tional Flood Insurance Program. The report shall
include a description of the methods used to deter-
mine compliance, the number of insured credit
unions examined during the reporting year, a listing
and total number of insured credit unions found to
be in noncompliance, actions taken to correct inci-
dents of noncompliance, and an analysis of compli-
ance, including a discussion of any trends, patterns,
and problems, and recommendations regarding rea-
sonable actions to improve the efficiency of the
examinations processes.’’.
SEC. 207. PENALTIES AND CORRECTIVE ACTIONS FOR FAIL-
URE TO REQUIRE FLOOD INSURANCE, ES-
CROW, OR NOTIFY.
Section 102 of the Flood Disaster Protection Act of
1973 (42 U.S.C. 4012a), as amended by sections 202 and
204, is amended by adding at the end the following new
subsections:
‘‘(f) CIVIL PENALTIES.—
‘‘(1) IN GENERAL.—A regulated lending institu-
tion that is found to have a pattern or practice of
violating this section may be assessed a civil penalty
by the appropriate Federal entity for lending regula-
tion of not more than $350 for each such violation.
A penalty under this subsection may be issued only
after notice and an opportunity for a hearing on the
record.