Home / Daily Dose / NFIP Extended Through November
Print This Post Print This Post

NFIP Extended Through November

floodingPresident Donald Trump recently signed a a continuing resolution that will avoid a federal government shutdown by funding the government at current levels until November 21. Included in the resolution is an extension of the National Flood Insurance Program (NFIP) through November 21.

September 30 was the deadline for Congress to reauthorize the NFIP. Lawmakers have been taking some steps to update the NFIP. For example, Senator Cindy Hyde-Smith of Mississippi is proposing an update to the Program, which aims to address the multiple extensions the NFIP has undergone with a long-term extension plan.

In her letter to Senate Banking Committee Chairman Michael Crapo and Ranking Member Sherrod Brown, Hyde-Smith puts forth several options to address affordability issues among low and middle-income policy holders and debt issues within the NFIP.

“We’re trying to flip the script on mitigation projects, from being reactionary to being proactive.  This is the first bill that provides a significant amount of real money for pre-disaster mitigation, which would give taxpayers a better return on investment.  It is far more expensive to rebuild after a disaster than it is to do everything you can to protect yourself beforehand,” Hyde-Smith said in a statement.

Through the NFIP-RE Act, Hyde-Smith suggests a new community mapping appeals process regarding flood maps created by the Federal Emergency Management Agency (FEMA) for states, local governments, or property owners, as well as a direction to FEMA to factor nonfederal flood control structures, like levees, when determining flood risk zone designations.

Additionally, the bill would increase NFIP participation among homeowners and small businesses by capping the premium rate increases to 9%.  Under the current system, rates can rise up to 25% annually in perpetuity.

“Runaway premium hikes under the current system undermine and weaken the flood insurance program, which increases the burden on taxpayers to pay for federal disaster assistance to cover uninsured losses,” Hyde-Smith said.  “There’s no point in having flood insurance if nobody can afford it. This bill would help meet the equally important goals of solvency and affordability.”

About Author: Seth Welborn

Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer.
x

Check Also

CFPB Aims for ‘Culture of Compliance’ in Finance System

On the one-year anniversary of her appointment as CFPB director, Kathleen L. Kraninger says she aims to create a “culture of compliance” in the U.S. finance system and highlights the bureau’s achievements under her direction.

GET YOUR DAILY DOSE OF DS NEWS

Featuring daily updates on foreclosure, REO, and the secondary market, DS News has the timely and relevant content you need to stay at the top of your game. Get each day’s most important default servicing news and market information delivered directly to your inbox, complimentary, when you subscribe.