The American Bankers Association today urged the House to pass H.R. 2874, which would reauthorize the National Flood Insurance Program for up to five years. The bill is expected to receive a vote on the House floor as soon as tomorrow.
“ABA strongly supports a long term reauthorization of the NFIP and we believe this legislation makes appropriate and necessary reforms, which will help to make the program more sustainable, while also balancing concerns over availability and affordability,” ABA wrote in a letter to House members. In addition to providing a five-year extension of the NFIP — and thus providing greater certainty to lenders and borrowers — the legislation also includes updates to interagency guidance and mandatory staffing that will facilitate compliance.
ABA expressed concern that the bill ends NFIP eligibility for properties with “excessive lifetime claims” but noted that this point comes after multiple claims totaling three times the replacement value of the structure, a more generous provision than was included in previous versions of the bill.