January 27, 2022

Fannie Mae calls for new FEMA flood risk disclosure standard

HousingFannie Mae wrote to the Federal Emergency Management Agency (FEMA) earlier this month to urge the agency to set federal standards for how home sellers disclose flood risks to potential buyers. Fannie Mae noted the federal standards would shine a light on potential damages homeowners would face from climate change, which has contributed to rising sea levels, stronger storm surges, and heavier rainfalls that increase flooding.

The government-sponsored enterprises (GSE) wrote to the agency in response to FEMA's request for information on the National Flood Insurance Program's floodplain management standards for land management and use.

NAFCU has previously identified a need for additional clarity regarding private flood insurance and has offered recommendations to the Federal Housing Finance Agency (FHFA) in response to the agency’s request for information (RFI) on climate change and natural disaster risk to the housing finance system and the government-sponsored enterprises (GSEs).

In addition, the NCUA continues to monitor climate change risk and has identified this focus in both its 2022-2023 budget and its 2022-2026 Strategic Plan.

NAFCU will continue to work with federal agencies to ensure credit unions' concerns related to flood insurance are addressed.