The National Flood Insurance Program should receive a long-term reauthorized and be reformed to better address commercial and multifamily lending.
Overview: Flood insurance is mandatory for any property located in a high-risk area with a mortgage from a federally-backed or federally-regulated lender. A long-term 7-10 year authorization of the National Flood Insurance Program (NFIP) is vital to provide needed certainty to homeowners and small businesses that depend on the program for flood damage protection, to protect our residential and commercial real estate markets, and to provide stability for the companies and agents that sell and administer the NFIP policies to millions of consumers across the country. In order to ensure a stable, affordable and sustainable flood insurance market, a private market for flood insurance must be allowed and encouraged to develop. The NFIP should receive a long-term reauthorization and be reformed to better address commercial and multifamily lending. In addition, the NFIP should be revised to reflect the impact of climate change on the risk of flooding and mudslides.
MBA also believes that flood insurance regulations and Q&As should accurately reflect underlying statutory authority and should reflect operational practicalities.
Recent MBA Activity Related to Flood Insurance
- October 27, 2020 - MBA Comments on Flood Insurance Q&As.
- January 22, 2021 - MBA coalition letter on Accepting Private Flood Insurance for FHA-Insured Mortgages.
- May 17, 2021 - MBA coalition letter on proposed Q&As on Private Flood Insurance.