Source: https://law.justia.com/codes/us/2014/title-42/chapter-50/subchapter-i/sec.-4012a/
Timestamp: 2019-06-17 04:47:59
Document Index: 599609082

Matched Legal Cases: ['§ 4012', '§102', '§451', '§522', '§1161', '§100208', '§1', '§13', '§ 4012', '§102', '§451', '§522', '§1161', '§100208', '§1', '§13', '§100209', '§1', '§25', '§3301', '§13', '§25', '§100238', '§100239', '§531', '§25', '§100209', '§25', '§25', '§21']

42 U.S.C. § 4012a (2014) - Flood insurance purchase and compliance requirements and escrow accounts :: Title 42 - The Public Health and Welfare (Sections 1 - 18445) - US Code :: Justia
Justia US Law US Codes and Statutes US Code 2014 US Code Title 42 - The Public Health and Welfare (Sections 1 - 18445) Chapter 50 - National Flood Insurance (Sections 4001 - 4131) Subchapter I - The National Flood Insurance Program (Sections 4011 - 4033) Sec. 4012a - Flood insurance purchase and compliance requirements and escrow accounts
Sec. 4012a - Flood insurance purchase and compliance requirements and escrow accounts
Contains section 4012a
Source Credit Pub. L. 93-234, title I, §102, Dec. 31, 1973, 87 Stat. 978; Pub. L. 98-181, title I [title IV, §451(e)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L. 103-325, title V, §§522-526, 531, 582(c), Sept. 23, 1994, 108 Stat. 2257-2262, 2267, 2287; Pub. L. 110-289, div. A, title I, §1161(e), July 30, 2008, 122 Stat. 2780; Pub. L. 112-141, div. F, title II, §§100208, 100209(a), 100238(a)(1), 100239(a), 100244(a), July 6, 2012, 126 Stat. 919, 920, 958, 966; Pub. L. 112-281, §1, Jan. 14, 2013, 126 Stat. 2485; Pub. L. 113-89, §§13(a), 25(a), Mar. 21, 2014, 128 Stat. 1026, 1030.
87 Stat. 978, 977
92 Stat. 3694
108 Stat. 2257-2262
126 Stat. 919, 2485, 920
128 Stat. 1026, 1028, 1030, 1031, 1032
Public and Private Laws Public Law 90-448, Public Law 93-234, Public Law 95-630, Public Law 98-181, Public Law 103-325, Public Law 110-289, Public Law 112-141, Public Law 112-281, Public Law 113-89
42 U.S.C. § 4012a (2014)
Each Federal entity for lending regulation (after consultation and coordination with the Financial Institutions Examination Council established under the Federal Financial Institutions Examination Council Act of 1974 [12 U.S.C. 3301 et seq.]) shall by regulation direct regulated lending institutions—
Each lender shall disclose to a borrower that is subject to this subsection that—
In this subsection, the term "private flood insurance" means an insurance policy that—
(A) is issued by an insurance company that is—
(i) a requirement for the insurer to give 45 days' written notice of cancellation or non-renewal of flood insurance coverage to—
Notwithstanding any other provision of this section, subsections (a) and (b) of this section shall not apply to any loan having—
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 [42 U.S.C. 4001 et seq.] 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.
If, at the time of origination or at any time during the term of a loan secured by improved real estate or by a mobile home located in an area that has been identified by the Administrator (at the time of the origination of the loan or at any time during the term of the loan) as an area having special flood hazards and in which flood insurance is available under the National Flood Insurance Act of 1968 [42 U.S.C. 4001 et seq.], the lender or servicer for the loan determines that the building or mobile home and any personal property securing the loan is not covered by flood insurance or is covered by such insurance in an amount less than the amount required for the property pursuant to paragraph (1), (2), or (3) of subsection (b) of this section, the lender or servicer shall notify the borrower under the loan that the borrower should obtain, at the borrower's expense, an amount of flood insurance for the building or mobile home and such personal property that is not less than the amount under subsection (b)(1) of this section, for the term of the loan.
Within 30 days of receipt by the lender or servicer of a confirmation of a borrower's existing flood insurance coverage, the lender or servicer shall—
The violations referred to in paragraph (1) shall include—
(A) making, increasing, extending, or renewing loans in violation of—
If the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation is found by the Director of the Federal Housing Finance Agency to have a pattern or practice of purchasing loans in violation of the procedures established pursuant to subsection (b)(3) of this section, the Director of such Office 3 shall assess a civil penalty against such enterprise in the amount provided under paragraph (5) of this subsection.
A determination under this paragraph shall be a finding that—
The borrower under such a loan may be charged the fee, but only if the determination—
(Pub. L. 93–234, title I, §102, Dec. 31, 1973, 87 Stat. 978; Pub. L. 98–181, title I [title IV, §451(e)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L. 103–325, title V, §§522–526, 531, 582(c), Sept. 23, 1994, 108 Stat. 2257–2262, 2267, 2287; Pub. L. 110–289, div. A, title I, §1161(e), July 30, 2008, 122 Stat. 2780; Pub. L. 112–141, div. F, title II, §§100208, 100209(a), 100238(a)(1), 100239(a), 100244(a), July 6, 2012, 126 Stat. 919, 920, 958, 966; Pub. L. 112–281, §1, Jan. 14, 2013, 126 Stat. 2485; Pub. L. 113–89, §§13(a), 25(a), Mar. 21, 2014, 128 Stat. 1026, 1030.)
Pub. L. 112–141, div. F, title II, §100209(a), July 6, 2012, 126 Stat. 920; Pub. L. 112–281, §1, Jan. 14, 2013, 126 Stat. 2485; Pub. L. 113–89, §25(a), (b)(1), Mar. 21, 2014, 128 Stat. 1030, provided that, applicable to any loan that is originated, refinanced, increased, extended, or renewed on or after Jan. 1, 2016, with provision for optional applicability, subsection (d)(1) of this section is amended to read as follows:
Except as may be required under applicable State law, a Federal entity for lending regulation may not direct or require a regulated lending institution to deposit premiums or fees for flood insurance under the National Flood Insurance Act of 1968 in an escrow account on behalf of a borrower under subparagraph (A)—
(II) on or before July 6, 2012, the regulated lending institution—
(ii) in the case of a loan that—
(II) is secured by residential improved real estate or a mobile home that is part of a condominium, cooperative, or other project development, if the residential improved real estate or mobile home is covered by a flood insurance policy that—
See 2012, 2013, and 2014 Amendment notes below.
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 Short Title note set out under section 3301 of Title 12 and Tables.
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 sections 4001, 4013 to 4016, 4026, 4054, 4056, and 4121 of this title.
2014—Subsec. (c)(3). Pub. L. 113–89, §13(a), added par. (3).
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).
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.
Pub. L. 113–89, §25(b)(1), Mar. 21, 2014, 128 Stat. 1031, provided that:
"(A) Required application.—The amendments to section 102(d)(1) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(d)(1)) made by section 100209(a) of the Biggert-Waters Flood Insurance Reform Act of 2012 (Public Law 112–141; 126 Stat. 920) and by subsection (a) of this section shall apply to any loan that is originated, refinanced, increased, extended, or renewed on or after January 1, 2016.
"(B) Optional application.—
"(II) the term 'outstanding loan' means a loan that—
"(III) the term 'section 102(d)(1)(A) of the Flood Disaster Protection Act of 1973, as amended' means section 102(d)(1)(A) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(d)(1)(A)), as amended by—
"(ii) Option to escrow flood insurance payments.—Each Federal entity for lending regulation (after consultation and coordination with the Federal Financial Institutions Examination Council) shall, by regulation, direct that each regulated lending institution or servicer of an outstanding loan shall offer and make available to a borrower the option to have the borrower's payment of premiums and fees for flood insurance under the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.), including the escrow of such payments, be treated in the same manner provided under section 102(d)(1)(A) of the Flood Disaster Protection Act of 1973, as amended."
Pub. L. 112–141, div. F, title II, §100209(b), July 6, 2012, 126 Stat. 920, which provided that the amendment made to this section by section 100209(a) of Pub. L. 112–141 would apply to any mortgage outstanding or entered into on or after the expiration of the 2-year period beginning on July 6, 2012, was repealed by Pub. L. 113–89, §25(b)(2), Mar. 21, 2014, 128 Stat. 1032. For effective date of amendment by section 100209(a) of Pub. L. 112–141, see Effective Date of 2014 Amendment note above.
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 amendments made by this section shall be construed to supersede, during the period beginning on July 6, 2012 and ending on December 31, 2015, the requirements under section 102(d)(1) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(d)(1)), as in effect on July 5, 2012."
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 Regulations, which are effective April 3, 2009; and section 60.3 of such title, which are effective April 3, 2009."