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Lapse of FEMA Authority to Issue Flood Insurance Policies; Financial Institution Letter that Addresses

The Financial Institution Letter linked below assists lenders in meeting their compliance obligations under the National Flood Insurance Program (NFIP) during periods when the statutory authority of the Federal Emergency Management Agency (FEMA) to issue flood insurance contracts under the NFIP lapses. The required NFIP authorization by Congress lapsed on March 1 and 2, 2010, but was temporarily reauthorized through March 28, 2010. The NFIP again lapsed between March 28 and April 16, 2010, and was reauthorized through May 31, 2010. This guidance applies to the March and April lapse periods and will continue to apply when there are future lapses in the NFIP. Clink on this link to view a complete copy of the Financial Institution Letter-23-2010.