The American Bankers Association today urged the House to vote to extend the National Flood Insurance Program through Nov. 30, providing certainty for lenders and borrowers during this year’s hurricane season. The House is set to vote on an extension bill tomorrow.
“For the financial services community, any lapse of program authority will make it difficult if not impossible to close loans to borrowers whose property is located in a special flood hazard area,” ABA wrote in a letter to House leaders. “Furthermore, a lapse in the NFIP may slow down recovery efforts in states impacted by the devastating 2017 hurricane season by making it harder for disaster assistance recipients to satisfy flood insurance requirements.”
ABA added that the short-term extension will provide additional time for Congress to work on long-overdue reforms to the NFIP. Meanwhile, a recent ABA Banking Journal article provided tips for bankers on preparing for a possible lapse in NFIP authorization.