July 08, 2012

NFIP reauthorized for 5 years

July 9, 2012 – The president on Friday signed into law a five-year extension of the National Flood Insurance Program, action that NAFCU President Fred Becker said will help instill confidence and improve stability in the still-sensitive housing market.

"NAFCU has been advocating strongly and continuously for a long-term extension of this critical program, and we applaud congressional leaders and the administration for bringing that to fruition," the NAFCU president said.

The NFIP has been working under temporary extensions for more than two years. The latest extension was slated to expire July 31. The long-term measure enacted Friday keeps the program operating through Sept. 30, 2017.

As enacted, the legislation (H.R. 4348) includes a clarification sought by NAFCU regarding lenders' authority to force-place flood insurance when homeowners fail to renew their policies. In other provisions, it eliminates the federal premium subsidy for new and refinanced non-primary residences.

The omnibus package also contains highway funding and keeps the interest rate on federal Stafford education loans at 3.8 percent. The rate had been scheduled to double.