House Committee on Financial Services has voted in favor
The decision by the House Financial Services Committee to move the National Flood Insurance Program Reauthorization Act of 2019 to the House floor, has been welcomed by industry bodies.
The proposed reauthorization of NFIP will extend it for a further 5-year period, increases the program's mitigation tools, and updates its mapping scope and technology, among other reforms.
The National Association of Realtors (NAR) and the National Association of Mortgage Brokers (NAMB) have both applauded the advancement of the Act.
“NAR is pleased to see the House Financial Services Committee take a critical first step in the process toward long-term National Flood Insurance Program reform and reauthorization,” said John Smaby, NAR President. “We thank Chairwoman Waters and Ranking Member McHenry for considering various NAR priorities within this legislation, including policies that address mapping, mitigation and private flood insurance, and we look forward to working with them to move responsible NFIP reforms through the House and Senate in the coming weeks.”
Advantages for the mortgage industry
NAMB Board President Rick Bettencourt echoed the sentiment.
“The National Association of Mortgage Brokers and its thousands of members are very proud this morning of Chairwoman Waters and Ranking Member McHenry for their tireless work spearheading a long-term solution that protects millions of Americans,” said Rick Bettencourt, NAMB Board President.” “This extension of the NFIP positively impacts many critical levels of the mortgage industry and our entire body stands by this bipartisan legislation that will improve how our industry can and will do business.”
NAMB says that according to experts, the reauthorization of NFIP will help the mortgage marketplace in many ways including:
- Increase funding for flood risk mapping and mitigation;
- Provide premium credits for not currently recognized mitigation activity;
- Create a new zone to account for levee-protected areas;
Establish umbrella coverage options for multifamily development.
