A coalition of housing and financial trade associations including ABA wrote to members of the House and Senate on Friday in support of the Flood Insurance Market Parity and Modernization Act. The bipartisan bill — which has been introduced in both houses of Congress — would provide consumers with private-sector alternatives to the National Flood Insurance Program.
Having such alternatives will increase competition and help drive down flood insurance costs, enhancing consumer protection against flood damages in mortgage markets and ensuring that more borrowers can be covered by flood insurance, the groups noted. The bill would also help return the taxpayer-funded NFIP to more robust financial condition.
The groups encouraged lawmakers to include the bill as part of legislation to reauthorize the NFIP before its expiration on Sept. 30. The House passed a similar version of the bill by an overwhelming bipartisan vote in the last Congress, and the measure was passed by the House Financial Services Committee by a vote of 58-0 earlier this year.