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2006 News and Events ItemsFEMA Issues Procedure Memorandum No. 43, Guidelines for Identifying Provisionally Accredited Levees President Signs Homeland Security Appropriations and FEMA Leaders' Statements on the passing of Gilbert F. White Disasters and the Law--Katrina and Beyond FEMA Reports Progress on Flood Map Modernization Mid-Course Adjustment Executive Summary Available Online Educational Seminars or Events PowerPoint presentation workshop aid for lenders at the Freddie Mac said it finds the current ACORD 28 (2006/07) form: Evidence of Commercial Property Insurance, unacceptable based on changes made to the form in July.Effective immediately, Freddie Mac said it will require either the previous ACORD 28 (2003/10) form, an ACORD 75 insurance binder or an insurance policy or duplicate original insurance policy as evidence of insurance. ACORD, a nonprofit organization that provides standardized forms to the insurance industry, changed certain language in the ACORD 28 form in July that eases liabilities and obligations for insurance companies. The changes could reduce the amount of relevant information received by insured parties on a policy, including commercial mortgage servicers. The Mortgage Bankers Association, various lenders and investors raised concerns following the changes made in July. "MBA concurs with Freddie Mac's conclusions that the revised ACORD 28 form is not substantive evidence of commercial property insurance and that lenders are not protected by the revised cancellation notification requirements,” said Gail Davis Cardwell, senior vice president of commercial/multifamily at MBA. “MBA strongly advocates notification of policy cancellations to all insureds cited on the insurance policy and provision of substantive and legally binding evidence of insurance to these same parties to promote timely and transparent insurance information on commercial properties.” The key changes appear in the first paragraph. The new form (2006/07) states that the evidence of commercial property insurance is “a matter of information only and confers no rights” for the “additional interest” on the policy, which could include a commercial mortgage servicer. The old form (2003/10), however states that evidence of commercial property insurance “has been issued, is in force, and conveys all the rights and privileges afforded under the policy." In the cancellation section, the new ACORD 28 form said that if an owner cancels any of the insurance policies prior to the expiration date, “the issuing insurer” is under no obligation or liability to mail written notice of the cancellation to the “interest named below,” which could include the commercial mortgage servicer. The old form also provides a time frame for the insurance company to provide written notice to the “interest named below,” but without additional language to reduce "obligation or liability" for the issuing insurer. Source: Mortgage Bankers Association
FEMA Issues Procedure Memorandum No. 43, Guidelines for Identifying Provisionally Accredited LeveesFEMA issued Procedure Memorandum No. 43 (PM 43), Guidelines for Identifying Provisionally Accredited Levees, on September 25, 2006. PM 43 provides guidance on showing flood hazards for areas behind levees on Flood Insurance Rate Maps (FIRMs) and clarifies procedures and timelines for levee documentation. For levees shown as accredited on the effective FIRMs, levee owners must provide documentation to show that the levee meets design, operation, and maintenance standards for protection against the 1-percent-annual chance flood to be accredited on FIRMs. However, documentation required to credit a levee often is outdated or missing altogether. Stakeholder feedback indicated that it may be difficult to produce the required documentation because it is not always immediately available and because additional assessment may be required. PM 43 provides levee owners additional time to gather data needed to assess the levee while allowing new FIRMs to be released. For eligible levees, levee owners have 24 months to gather information on the extent to which a levee meets current flood protection standards. In the interim, areas behind the levee are mapped as moderate risk areas, and the levee itself is noted to be a Provisionally Accredited Levee. If the levee meets FEMA’s criteria, the map will continue to show the area behind the levee as protected from the 1 percent-annual-chance flood and mapped as a moderate risk zone. But if it does not, the map will show the area as a high-risk zone, or Special Flood Hazard Area. Additionally, FEMA and the U.S. Army Corps of Engineers (USACE) are working together to make sure that FIRMs accurately represent the flood risks posed to areas behind them. On September 26, 2006, the USACE issued a memorandum that provides levee inspection policy guidance on levee systems in its program. FEMA and the USACE collaboratively developed this FEMA's mapping requirements are designed to provide the people living and working behind the levee with appropriate risk information so that they may minimize damage and loss of life. To learn more, please visit www.fema.gov/plan/prevent/fhm/lv_intro.shtm.
President Signs Homeland Security Appropriations and FEMA ReformOn Wednesday, October 4, the president signed the Fiscal Year 2007 Homeland Security Appropriations bill (Public Law 109-295), providing $34.8 billion in discretionary spending for the U.S. Department of Homeland Security. Title III designates $6.5 billion for preparedness and recovery activities, including: Preparedness ($4 billion):
Federal Emergency Management Agency (FEMA) ($2.5 billion):
Also part of the new law is the Post-Katrina Emergency Management Reform Act of 2006 that calls for a comprehensive structural overhaul of FEMA that elevates the status of the director to the level of deputy secretary and requires that the director have extensive emergency response and crisis management experience; prevents the diversion of FEMA funds to other agencies; requires clearer coordination between federal, state, and local emergency preparedness entities; and restores the nexus between emergency preparedness and response. The new law and the accompanying conference report (109-699) are available in any federal repository library and on the Library of FEMA Leaders' Statements on the passing of Gilbert F. WhiteWASHINGTON, D.C. -- FEMA Director David Paulison and Federal Flood Insurance Administrator and FEMA Mitigation Director David Maurstad, today, issued statements on the death of the “Father of Floodplain Management,” Gilbert F. White, 94, who died October 5, 2006 at his home in Boulder, Colo. “Mr. White was a pioneer in a field which protects people and their homes,” said Director Paulison. “At a time when the main stream thought was to build bigger and stronger flood control devices, Mr. White was investigating creative – and effective – methods that promoted safety, but not at the cost of damaging rivers and waterways. His legacy is a program that keeps people safe, protects the environment and makes smart investments in mitigation activities at all levels of government.” “His influence and contribution to making communities safer throughout the world can scarcely be measured. We have truly lost a giant, a visionary leader in the field of hazard mitigation,” Administrator Maurstad said. “Dr. White made extraordinary contributions to educating governments about the full range of actions available to manage floodplains and mitigate flood losses. His persistence over several decades moved this country away from relying solely on engineering solutions to flood hazards. Dr. White convinced the nation to take a broader view of reducing flood risks, including the implementation of the National Flood Insurance Program, which encourages responsible floodplain management at the local level to create stronger, safer communities.” “Dr. White's generosity in mentoring and developing other mitigation leaders was also well known, and the nation will continue to benefit from his fostering an entire community of researchers and practitioners involved in natural hazards,” Maurstad continued. “Countless people were touched by his warmth and caring. Many in FEMA are honored to have met Dr. White during his tenure at the University of Colorado’s Natural Hazards Center. His passion for his work was obvious, as was his gift for connecting with people. Gilbert White will be missed, but his legacy will extend to future generations. It is our hope that we can carry on the mission of responsible management of our nation’s floodplains and flood hazards and one day realize Gilbert’s vision,” said Director Paulison. More on Mr. White’s career and legacy can be found at: http://www.colorado.edu/news/releases/2006/331.html FEMA prepares the nation for all hazards and manages federal response and recovery efforts following any national incident. FEMA also initiates mitigation activities, trains first responders, works with state and local emergency managers, and manages the National Flood Insurance Program.
FEMA release, By the NumbersAs we reach the anniversary of Katrina, it behooves us to look at the events following the storm. The attached summary, By The Numbers, not only confirms the magnitude of the disaster, but quantifies the enormity of the response and the demands put upon the nation, its governments, agencies, and citizens. As you read through the list be thankful that you live in a country that not only has the resources, but the heart to respond to people in peril. Focus on the positive aspects of the response and recovery efforts, not the negatives spawned more by magnitude than malice or ignorance, and make a pledge to yourself to review the perils that face you and your customers and act to prepare for them in such a way that life and property are better protected if or when disaster strikes.
Disasters and the Law--
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