MBA, Trade Groups Press Congress on Flood Insurance Program Extension

More than two dozen industry trade groups joined the Mortgage Bankers Association in a letter to House and Senate leaders, urging them to extend the National Flood Insurance Program beyond its latest expiration date (Nov. 30).

The letter noted while the NFIP must be periodically reauthorized, Congress has yet to pass a long-term extension of the NFIP, as debate continues regarding options for reforming the program. This has already resulted in a series of seven stop-gap extensions and two brief lapses in 2017 and 2018.

“The NFIP is currently the main source of flood insurance in the United States, and Americans deserve certainty and stability in the flood insurance marketplace to be able to protect their homes and loved ones,” the letter said. “A lapse of the NFIP will leave millions of Americans at risk and cause disruption in the over 20,000 communities across the country that depend on the program. Furthermore, a lapse in the NFIP may slow down recovery efforts related to Hurricanes Florence and Michael by making it harder for disaster assistance recipients to satisfy flood insurance requirements.”

The letter noted flooding is the most common and costly natural disaster in the United States. “It is critical that in the meantime the NFIP remain available to those who need it,” it said.