In a long-awaited move last night, House Financial Services Committee Chairwoman Maxine Waters (D-Calif.) and Ranking Member Patrick McHenry (R-N.C.) announced that they have reached an agreement on a five-year extension of the National Flood Insurance Program. Their draft bill—which is expected to receive a markup in the committee on Tuesday—would extend the program through Sept. 30, 2024, and would include a series of reforms to the program’s operations.
Specifically, the bill would address affordability issues, improve the flood mapping program and improve floodplain management and mitigation. It would also take steps to 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.
The American Bankers Association has long called for the long-term reauthorization of the NFIP and with reforms that provide greater guidance for lenders and do not create additional compliance burden for banks. The association was generally supportive of the bill, but cautioned that some of the proposed measures could be burdensome to servicers. ABA will continue to work constructively with lawmakers as the bill is considered.