Flood Insurance Issues
In This Section
Nationwide availability of affordable flood insurance is an important part of sustainable homeownership and building communities.
Overview: The increase of frequency and severity of flooding events in the United States, combined with evolving risks associated with chronic inundation from rising sea levels necessitate a more robust flood insurance system. Expanding space for a private market, ensuring long-term reauthorization of the NFIP, and providing clear guidance on acceptable policies in mandatory purchase zones are all important facets of improving American resiliency to flood events.
Recent MBA Activity Related to Flood Insurance Issues
Lender Briefing on Risk Rating 2.0 Webinar Recording (Hosted by American Bankers Association (ABA), Mortgage Bankers Association (MBA), and National Flood Association (NFA) - Risk Rating 2.0-Equity in Action-has been described as the most significant change to the NFIP since its creation in 1968. This transformative change to NFIP's policy rating methodology aims to modernize the federal insurance program by bringing more data and technology into rate-setting-and moves away from reliance upon flood zones-in order to produce more equitable and actuarially sound rates.But with the initial phase of Risk Rating 2.0 right around the corner, how will you and your customers be impacted? Will your borrowers have affordability concerns based on new premiums? What questions will borrowers ask when renewal approaches? What about your borrowers that have a Preferred Risk Policy? What system or form changes will you need to make? Will the mandatory purchase requirement be impacted? What about flood zone discrepancies? Watch the recording (use password sKHr$LB9) and view the slides to learn more.
- Joint Trades Letter: Coalition on NFIP Reauthorization (November 22, 2018)
- Letter: MBA to US House on Support for NFIP Reauthorization (July 25, 2018)
- Joint Trades Letter: Coalition to Congress on NFIP Lapse (July 10, 2018)
- Joint Trades Letter: Coalition to FHA on Flood Insurance Requirements (July 26, 2017)
- Joint Trades Letter: Coalition to Congress on Support for Flood Insurance Market Parity and Modernization Act (July 14, 2017)
- Letter: MBA to Congress on Support for Flood Insurance Market Parity and Modernization Act (March 8, 2017)
- Comment Letter: MBA to Agencies on Notice of Proposed Rulemaking for Special Flood Hazards (January 6, 2017)
- Comment Letter: MBA to HUD on Proposed Rule regarding Minimum Property Standards for Flood Hazard Exposure and FFRMS (December 21, 2016)