MBA Backs Bipartisan Flood Insurance Market Parity and Modernization Act
The House of Representatives recently voted 264-155 in favor of the Flood Insurance Market Parity and Modernization Act, which aims at increasing flood insurance options for private property owners. The bill has gathered bipartisan support, sponsored by Reps. Dennis Ross (R-Florida) and Kathy Castor (D-Florida), and even an endorsement from the Mortgage Bankers Association (MBA).
Rep. Ross commented that “recent major flood events across the country have provided a much-needed sense of urgency to our efforts to provide consumer with private sector flood insurance options.” He continued on to say, “Currently, many homeowners in Florida and across the country face unaffordable flood insurance premiums and a lack of coverage options, largely due to federal regulatory barriers that give the National Flood Insurance Program a harmful monopoly over the marketplace… It would be irresponsible to delay passage of this bipartisan reform any longer.”
The bill has been amended to clarify how non-government flood insurance policies (i.e. not the National Flood Insurance Program) can satisfy the federal flood insurance mandate in designated high-risk areas. Involved parties hope that the proposed bill will “[reduce] the number of uninsured homes and [incentivize] investments in flood mitigation and resiliency efforts.”
The Flood Insurance Market Parity and Modernization Act is also supported by House financial Services Committee Chairman Jeb Hensarling (R-Texas).
Janus AMC is closely following developments regarding Congressional action on flood insurance regulations. Check back soon for the latest updates.