S.Amdt. 2691

1. Adds SEC. 1__. EXCEPTIONS TO ESCROW REQUIREMENT FOR FLOOD INSURANCE PAYMENTS at the end of title I

   Adds a section

   Inserted: SEC. 1__. EXCEPTIONS TO ESCROW REQUIREMENT FOR FLOOD INSURANCE PAYMENTS.

   Inserted: (a) In General.--Section 102(d)(1) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(d)(1)) is amended--

   Inserted: (1) in subparagraph (A), in the second sentence, by striking "subparagraph (C)" and inserting "subparagraph (B)"; and

   Inserted: (2) in subparagraph (B)--

   Inserted: (A) in clause (ii), by redesignating subclauses (I) and (II) as items (aa) and (bb), respectively, and adjusting the margins accordingly;

   Inserted: (B) by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively, and adjusting the margins accordingly;

   Inserted: (C) in the matter preceding subclause (I), as redesignated by subparagraph (B), by striking "(A) or (B), if--" and inserting the following: "(A)--

   Inserted: "(i) if--";

   Inserted: (D) by striking the period at the end and inserting "; or"; and

   Inserted: (E) by adding at the end the following

   Inserted: "(ii) in the case of a loan that--

   Inserted: "(I) is in a junior or subordinate position to a senior lien secured by the same residential improved real estate or mobile home for which flood insurance is being provided at the time of the origination of the loan;

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   Inserted: "(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--

   Inserted: "(aa) meets the requirements that the regulated lending institution is required to enforce under subsection (b)(1);

   Inserted: "(bb) is provided by the condominium association, cooperative, homeowners association, or other applicable group; and

   Inserted: "(cc) the premium for which is paid by the condominium association, cooperative, homeowners association, or other applicable group as a common expense;

   Inserted: "(III) is secured by residential improved real estate or a mobile home that is used as collateral for a business purpose;

   Inserted: "(IV) is a home equity line of credit;

   Inserted: "(V) is a nonperforming loan; or

   Inserted: "(VI) has a term of not longer than 12 months.".

   Inserted: (b) Applicability.--

   Inserted: (1) In general.--

   Inserted: (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.

   Inserted: (B) Optional application.--

   Inserted: (i) Definitions.--In this subparagraph--

   Inserted: (I) the terms "Federal entity for lending regulation", "improved real estate", "regulated lending institution", and "servicer" have the meanings given the terms in section 3 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4003);

   Inserted: (II) the term "outstanding loan" means a loan that--

   Inserted: (aa) is outstanding as of January 1, 2016;

   Inserted: (bb) is not subject to the requirement to escrow premiums and fees for flood insurance 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; and

   Inserted: (cc) would, if the loan had been originated, refinanced, increased, extended, or renewed on or after January 1, 2016, be subject to the requirements under section 102(d)(1)(A) of the Flood Disaster Protection Act of 1973, as amended; and

   Inserted: (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--

   Inserted: (aa) section 100209(a) of the Biggert-Waters Flood Insurance Reform Act of 2012 (Public Law 112-141; 126 Stat. 920); and

   Inserted: (bb) subsection (a) of this section.

   Inserted: (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.

   Inserted: (2) Repeal of 2-year delay on applicability.--Subsection (b) of section 100209 of the Biggert-Waters Flood Insurance Reform Act of 2012 (Public Law 112-141; 126 Stat. 920) is repealed.

   Inserted: (3) Rule of construction.--Nothing in 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.

   Original wording

   At the end of title I, add the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed