June 29, 2012 – The House and Senate today approved an omnibus agreement to, among other things, provide a five-year reauthorization supported by NAFCU for the National Flood Insurance Program.
NAFCU has warned that failing to complete a long-term NFIP extension would be detrimental to the housing recovery, credit unions and homeowners.
The draft package was negotiated earlier in the week by House and Senate leaders. The House passed it Friday on a vote of 373-52. The Senate cleared it on a vote of 74-19. The bill is on its way to President Obama, who is expected to sign it over the weekend.
The NFIP portion of the measure includes a clarification sought by NAFCU regarding lenders’ force-placement of flood insurance when homeowners allow the coverage to lapse.
The NFIP has been operating under a long series of temporary extensions; the latest is due to expire July 31.
Other provisions in the omnibus package include highway funding and a one-year extension of the current, 3.4 percent rate cap on federally subsidized Stafford education loans. The Stafford loan rate cap is scheduled to double to 6.8 percent July 1 without congressional action.