Senate Banking panel eyes 2012 NFIP act
Sept. 13, 2013 – Progress since enactment of the Biggert-Waters Flood Insurance Act of 2012 will be reviewed Sept. 18 in a hearing by the Senate Banking Subcommittee on Economic Policy.
The measure, as urged by NAFCU, reauthorized the National Flood Insurance Program for five years, ending a lengthy period of NFIP operation by a series of short-term extensions that kept homeowners and mortgage lenders nervous.
The statute authorized the NFIP through fiscal 2017. It also requires a gradual phase-out of federal subsidies for flood insurance on second homes. Meanwhile, the measure clarifies – as urged by NAFCU – that lenders may collect premiums for force-placed flood insurance during a 45-day notification if borrowers allow their policies to lapse.
Next week’s hearing is set for 2:30 p.m. Witnesses include Sens. David Vitter, R-La., and Mary Landrieu, D-La.; Federal Emergency Management Agency Administrator William Craig Fugate; Alicia Cackley of the Government Accountability Office; and Christine Shirley, an NFIP coordinator for the state of Oregon.
Witnesses from Taxpayers for Common Sense and the Center for Economic Justice are also slated.