WASHINGTON (5/16/12)--The National Flood Insurance Program (NFIP) would be extended until June 30 under legislation that is expected to be offered by Rep. Judy Biggert (R-Ill.) today.
The NFIP is scheduled to lapse on May 31.
In the past the program has lapsed for brief periods--three times in 2010, and CUNA has noted that these lapses have caused significant disruption in the mortgage underwriting process for thousands of prospective homeowners.
The Credit Union National Association (CUNA) has urged members of the U.S. Congress to extend the NFIP or reform the program, as credit unions and other lenders cannot write certain mortgages without NFIP coverage. CUNA also recently joined a coalition of associations representing homebuilders, the insurance industry, other financial institutions, brokers, and others to ask Congress to act on NFIP issues.
Comprehensive NFIP reform has not been agreed to in the House or Senate, but many Democrats and Republicans have said the NFIP is in need of reform, and other bills that would extend the NFIP and make some changes have been offered.
On the Senate side, S. 2344, which would extend the NFIP through the end of this year, was introduced recently by Sen. David Vitter (R-La.). Vitter has said he would offer the bill as a potential floor amendment.
Legislation that would extend the NFIP for five years has also been approved in the House and by the Senate Banking Committee.