Rep. Blaine Luetkemeyer (R-Mo.) today introduced the Taxpayer Exposure Mitigation Act, which includes several flood insurance reform policies. The bill includes provisions to require risk transfer from the National Flood Insurance Program to the capital markets, in line with similar programs in place at Fannie Mae and Freddie Mac, and would exempt commercial loans from the mandatory purchase requirements, a concept that ABA generally supports but which may require further refinement to ensure adequate consumer protections.
American Bankers Association staff are working closely with members of the House and Senate on flood insurance reform, as the NFIP expires on Sept. 30. Sens. Bill Cassidy (R-La.) and Kirsten Gillibrand (D-N.Y.) recently introduced a separate flood insurance reauthorization bill, and ABA has expressed support for a proposal from Reps. Dennis Ross (R-Fla.) and Kathy Castor (D-Fla.) to develop a more robust private flood insurance market.