WASHINGTON—Ahead of a hearing on reauthorization and reform of the National Flood Insurance Program, NAFCU has sent a letter to the House Financial Services Subcommittee on Housing, Community Development, and Insurance sharing its support for the long-term authorization and continued modernization of the NFIP.
NAFCU noted it has long supported legislation that would reauthorize the NFIP and improve the financial solvency of the program to maintain market stability. The association noted it has, however, cautioned against raising annual premium rates too quickly.
“NAFCU encourages Congress to enact a long-term reauthorization to reform and modernize the NFIP, and we stand ready to work with Congress in this regard,” wrote NAFCU VP-Legislative Affairs Brad Thaler. “However, with the NFIP in danger of lapsing at the end of September, it is critical that Congress enact an extension of the program in time to ensure that the NFIP is not disrupted.”
The funding for the program was extended earlier this year when lawmakers reached a deal to pass the omnibus package in March.
‘Millions at Risk’
“NAFCU appreciates the urgency with which Congress is acting to prevent this vital program from lapsing, as a lapse of the NFIP will leave millions of homeowners at risk and create disruptions and uncertainty in the housing market,” concluded Thaler.
NAFCU reminded that in January Fannie Mae wrote to the Federal Emergency Management Agency (FEMA) urging it to set federal standards for how home sellers to disclose flood risks to potential buyers.
The government-sponsored enterprise (GSE) wrote to the agency in response to FEMA's request for information (RFI) on the NFIP's floorplan management standards for land management and use.