The Problem: Congress provided a five-year reauthorization of the National Flood Insurance Program (NFIP), but severe implementation problems threaten to undermine real estate transactions where flood insurance is required to obtain a mortgage.
- New NFIP rate structures have caused serious confusion and hardship for property owners.
- The Federal Emergency Management Agency (FEMA) continues to delay and miss deadlines.
- The legally required transition to true risk rates has plagued consumers with increases in rates beyond what anyone imagined possible.
The Solution: A four-year time-out. Congress has legislation in the House, H.R. 3370 and Senate, S. 1610, to delay changes to the NFIP. These bills would:
- prudently defer rate increases until FEMA completes the affordability study mandated by law
- create a system for targeted rate relief
- establish an office of the Advocate for flood insurance rate and mapping concerns.
In 2014 the National Association of REALTORS® will make flood insurance a top priority. Visit www.realtorcenter.com for updates.