House Financial Services Committee Advances Several ABA-Backed Bills

By a unanimous vote tonight, the House Financial Services Committee advanced the NFIP Reauthorization Act of 2019, a compromise bill between Chairwoman Maxine Waters (D-Calif.) and Ranking Member Patrick McHenry (R-N.C.) to extend the National Flood Insurance Program through Sept. 30, 2024 and make several additional reforms to the program. The committee also unanimously passed H.R. 3111—a bill by Rep. Nydia Velasquez (D-N.Y.) that would make changes to the NFIP claims process.

ABA President and CEO Rob Nichols applauded the vote. “Today’s action is an important step in ensuring that the program is reliably available for borrowers seeking to purchase homes in special flood hazard areas where purchasing flood insurance is mandatory,” Nichols said. “It would also modernize the NFIP, including the introduction of a ‘continuous coverage’ provision that allows borrowers leaving the program to purchase private flood insurance to return to the NFIP without penalty. We also appreciate that the bill would address affordability issues, improve the flood mapping program and improve floodplain management and mitigation.”

Another ABA-supported measure by Rep. Carolyn Maloney (D-N.Y.) to establish a national database of beneficial ownership information passed by a vote of 43 to 16. ABA has long supported the creation of such a database, and noted earlier this week that the bill strikes a good balance between imposing minimal requirements on small businesses while providing critical information to law enforcement and financial institutions performing due diligence.