Q: How does the final rule, especially the compliance aid, work in conjunction with the requirements from the secondary market investors, for example Fannie Mae and Freddie Mac? Will the secondary market investors revise their guidance to match the agencies' final rule?
A: The requirements for the secondary market are separate from the agencies' final rule. A lender should carefully review these separate requirements for secondary market investors regarding acceptable private flood insurance if the lender plans to sell loans to such investors and direct questions regarding these requirements to the appropriate entities.
This Q&A was part of the discussion in the Outlook Live – 2019 Interagency Flood Insurance Update on Private Flood Insurance Rule webinar held on 6/18/19 and focused on the new private flood insurance rules that become effective 7/1/19. Information may be found here: https://www.webcaster4.com/Webcast/Page/577/30085