Newsroom
NAFCU shares support for extension of NFIP ahead of HFSC hearing
NAFCU Vice President of Legislative Affairs Brad Thaler wrote to the House Financial Services Subcommittee on Housing, Community Development, and Insurance ahead of their hearing today on the reauthorization and reform of the National Flood Insurance Program (NFIP), sharing the association’s support for the long-term authorization and continued modernization of the NFIP.
NAFCU has long supported legislation that would reauthorize the NFIP and improve the financial solvency of the program to maintain market stability. The association 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 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.
“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.
Of note, Fannie Mae in January wrote to the Federal Emergency Management Agency (FEMA) urging the agency to set federal standards for how home sellers 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. NAFCU has asked for additional clarity regarding private flood insurance and has offered recommendations to the FHFA in response to the agency’s RFI on climate change and natural disaster risk to the housing finance system and GSEs.
Read the letter. NAFCU will monitor the hearing and share any updates with credit unions via NAFCU Today.