Flood Insurance

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The legislation reopening the government signed by President Trump, H.R. 5731, also reauthorizes the National Flood Insurance Program (NFIP) until January 30, 2026, the same day the spending measure lapses. The reauthorization is retroactive to October 1 the beginning of the fiscal year and the day the NFIP authorization expired.

Once again, the short-term reauthorization was included in a short-term spending bill, since Congress has been unable to pass a comprehensive NFIP reauthorization bill.… Continue Reading

Financial institutions may continue to make loans that would otherwise be subject to federal flood insurance statutes even though the authorization for the National Flood Insurance Program (NFIP) has lapsed, federal financial regulators reassured lenders.

During a NFIP lapse, lenders are permitted to make these loans without requiring federal flood insurance, the Farm Credit Administration, FDIC, Federal Reserve Board, OCC and NCUA said, in joint guidance to financial institutions.… Continue Reading

If Congress does not reauthorize the National Flood Insurance Program (NFIP) by September 30, major parts of the program will expire—a lapse that could cause major problems in the mortgage industry.

In past NFIP lapses, borrowers were not able to purchase flood insurance to close, renew or increase loans secured by property that required flood insurance.… Continue Reading

The continuing resolution passed by Congress late last week provides for an extension of the National Flood Insurance Program (NFIP) until March 14, 2025. While the mortgage industry has for years advocated for a long-term authorization of the NFIP, Congress has not done so and has provided for temporary authorizations of the NFIP in short-term and end-of-year appropriations measures.… Continue Reading

The National Flood Insurance Program’s authorization to write new policies will expire December 20, unless Congress acts to extend it.

An extension had been included in the Continuing Resolution that the House and Senate were poised to consider this week. That legislation would have funded many federal programs until March 14.… Continue Reading

The Federal Emergency Management Agency (FEMA) has announced it will allow National Flood Insurance Program (NFIP) premiums to be paid on an installment basis. The final rule implements an installment payment option that was mandated by Congress in the Biggert-Waters Flood Insurance Reform Act, adopted in 2012, for policyholders who are not required to pay into escrow for flood insurance premiums. … Continue Reading

The House and Senate on September 25, 2024 passed legislation that would extend key parts of the National Flood Insurance Program (NFIP) until December 20, 2024. The extension is included in H.R. 9747, which also would provide funds for much of the federal government to keep operating until that date.

President Biden has said he will sign the legislation.… Continue Reading

The National Flood Insurance Program’s authorization to issue new flood insurance contracts will expire on Sept. 30 unless Congress votes to extend it.

Congress has been unable to enact a long-term extension of parts of the program. Traditionally an extension of the authorization to write new insurance contracts has been included in short-term and end-of-year appropriations measures.… Continue Reading

The U.S. Department of Housing Urban Development (HUD) recently issued a final rule permitting the use of private flood insurance policies with FHA-insured mortgage loans.  HUD also issued Mortgagee Letter 2022-18 addressing with regard to FHA-insured loans general flood insurance requirements, flood insurance requirements for condominiums, manufactured homes and home equity conversion mortgage (HECM) loans (i.e.,… Continue Reading

The U.S. Department of Housing Urban Development (HUD) announced a proposed rule to permit the use of private flood insurance policies with FHA mortgage loans. As previously reported, in February 2019 federal regulators issued a joint final rule (the “Joint Final Rule”) to implement provisions of the Biggert-Waters Flood Insurance Reform Act of 2012 (the “Act”) that require regulated financial institutions to accept private flood insurance policies.… Continue Reading