Recordkeeping and Disclosure Requirements Associated with Loans Secured by Real Estate Located in Flood Hazard Areas Pursuant to Section 208.25 of Regulation H

Forms and Documents

Document Name	Status
FRH2_20190618_83c.pdf Justification for No Material/Nonsubstantive Change	2019-06-18

IC Document Collections

IC ID	Document Title	Status
36316	Retention of standard FEMA form (Section 208.25(f)(2)) Recordkeeping	Modified
219054	One-time notice for any designated loan outstanding on January 1, 2016 (Section 208.25(e)) Disclosure	Modified
199397	Purchase of flood insurance on the borrower's behalf due to remapping (Section 208.25(g)) Disclosure	Modified
199396	Notice to borrowers of lapsed mandated flood insurance due to remapping (Section 208.25(g)) Disclosure	Modified
199395	Purchase of flood insurance on the borrower's behalf (Section 208.25(g)) Disclosure	Modified
199391	Notice to borrowers of lapsed mandated flood insurance (Section 208.25(g)) Disclosure	Modified
184841	Notice to FEMA of change in servicer (Section 208.25(j)(2)) Disclosure	Modified
184840	Notices to FEMA of servicer (Section 208.25(j)(1)) Disclosure	Modified
184839	Notice of special flood hazards and availability of federal disaster relief assistance (Section 208.25(i)) Disclosure	Modified

ICR Details

OMB Control No: 7100-0280	ICR Reference No: 201906-7100-002
Status: Historical Active	Previous ICR Reference No: 201510-7100-002
Agency/Subagency: FRS	Agency Tracking No: FR H-2
Title: Recordkeeping and Disclosure Requirements Associated with Loans Secured by Real Estate Located in Flood Hazard Areas Pursuant to Section 208.25 of Regulation H
Type of Information Collection: No material or nonsubstantive change to a currently approved collection	Common Form ICR:  No
Type of Review Request: Delegated
OIRA Conclusion Action: Approved without change	Conclusion Date: 06/18/2019
	Date Received in OIRA: 06/18/2019
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	06/30/2019	06/30/2019	06/30/2019
Responses	507,381	0	544,000
Time Burden (Hours)	30,575	0	66,088
Cost Burden (Dollars)	0	0	0

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Abstract: In general, the federal flood insurance statutes and Regulation H - Membership of State Banking Institutions in the Federal Reserve System (12 CFR 208) provide that a lender shall not make, increase, extend, or renew a loan secured by a building or mobile home located in a special flood hazard area unless the secured property is covered by flood insurance for the term of the loan. With respect to the recordkeeping and disclosure provisions, the regulation requires state member banks to: • retain a completed copy of the Standard Flood Hazard Determination Form developed by the Federal Emergency Management Agency (standard FEMA form). The form is used by lenders to document their determination of whether improved property securing a loan is in a special flood hazard area, • notify a borrower and servicer when loans secured by improved property are determined to be in a special flood hazard area and retain a record of receipt of the notice, • notify a borrower of a loan secured by residential improved property or a mobile home that the state member bank is required to escrow all premiums and fees for required flood insurance when the bank makes, increases, extends, or renews the loan. For loans secured by residential improved property or a mobile home that were outstanding on January 1, 2016, or July 1 of the first year in which the bank loses its exception from the escrow requirement, the state member bank must mail or deliver information on the option to escrow flood premiums and fees, • notify a borrower of the borrower’s obligation to obtain flood insurance if the lender determines at any time during the term of the loan that the improved property securing the loan is not covered by adequate flood insurance. If the borrower fails to obtain the flood insurance within 45 days of this notification, the state member bank or its servicer must purchase insurance and may charge the borrower for the cost of the premiums. If the state member bank receives confirmation of a borrower’s existing flood insurance coverage after it has force placed insurance on behalf of the borrower, the bank or its servicer shall notify the insurance provider to terminate any insurance purchased by the bank or its servicer, and • notify the Federal Emergency Management Agency (FEMA) of the identity of, and any change in, the servicer of a loan secured by improved property in a special flood hazard area. The information collection requirements under the flood hazard provisions of Regulation H are triggered by specific events in the lending process.

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Authorizing Statute(s): US Code: 42 USC 4104a Name of Law: National Flood Insurance Act
   US Code: 42 USC 4012a Name of Law: Flood Disaster Protection Act
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
7100-AE22	Final or interim final rulemaking	80 FR 43216	07/21/2015

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	78 FR 65108	10/30/2013
30-day Notice:	Federal Register Citation:	Citation Date:
	79 FR 64518	10/30/2014
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 9

IC Title	Form No.	Form Name
Notice to borrowers of lapsed mandated flood insurance (Section 208.25(g)) Disclosure
Purchase of flood insurance on the borrower's behalf (Section 208.25(g)) Disclosure
Notices to FEMA of servicer (Section 208.25(j)(1)) Disclosure
Notice of special flood hazards and availability of federal disaster relief assistance (Section 208.25(i)) Disclosure
Retention of standard FEMA form (Section 208.25(f)(2)) Recordkeeping
Notice to FEMA of change in servicer (Section 208.25(j)(2)) Disclosure
Purchase of flood insurance on the borrower's behalf due to remapping (Section 208.25(g)) Disclosure
Notice to borrowers of lapsed mandated flood insurance due to remapping (Section 208.25(g)) Disclosure
One-time notice for any designated loan outstanding on January 1, 2016 (Section 208.25(e)) Disclosure

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ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	507,381	544,000	0	0	-36,619	0
Annual Time Burden (Hours)	30,575	66,088	0	0	-35,513	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: The decrease in annual burden hours reflects an update to the respondent count.

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Annual Cost to Federal Government: $0

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     Yes

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 06/18/2019

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