The American Bankers Association today joined 13 associations and coalitions in urging lawmakers to adopt a long-term reauthorization of the National Flood Insurance Program, saying it would provide “certainty for the millions of Americans who rely on this vital program to protect their families and properties from flooding.”
In a joint letter, the groups noted that during the recent government shutdown, the NFIP lacked authority to issue new flood insurance policies, putting up to 40,000 home sales at active risk of closing without active flood insurance. “The unavailability of the NFIP for any period of time is highly disruptive to the mortgage and commercial lending processes, to the availability of financial and technical assistance to homeowners of repetitive loss properties, and to NFIP policyholders attempting to renew their expiring policies,” they said.
“As the federal government has reopened, we urge Congress to include authorization of the NFIP beyond the current fiscal year in future legislative proposals,” the groups said. “More importantly, it is time to end the cycle of short-term extensions and program lapses that fuel instability in real estate markets and communities dependent on reliable flood coverage and mitigation support.”
