HARRISBURG, Pa. (1/30/14)--The Pennsylvania Credit Union Association is watching federal legislation that would change the National Flood Insurance Program (NFIP).
At the state level, both the House Democratic Policy Committee and Senate have held hearings on legislation--set for a vote in the U.S. Senate today--that would delay rate increases for up to four years and implement additional NFIP reforms (S. 1926).
"While this appears to be a federal issue, there is great concern among elected officials in Harrisburg," said PCUA President/CEO Patrick Conway (Life is a Highway Jan. 28).
The league is "educating appropriate parties about the act's unintended consequences on credit unions, and monitoring state committee and legislative actions for potential relief for consumers," Conway added.
Tuesday's panel discussion went beyond the Biggert-Waters Flood Insurance Reform Act of 2012, the exponentially higher flood insurance rates that homeowners face, and the recently introduced federal legislation that addresses rate increases and other reforms.
Sen. Gene Yaw (R-Lycoming) said every county in the state has high-flood risk areas, reported Life is a Highway (Jan. 29).
Roughly six out of every 1,000 properties in Pennsylvania has a flood insurance policy, but as many as five times that many parcels are located in a flood zone.
The Credit Union National Association is closely watching the progress of an amendment that may be offered by Sen. Jeff Merkley (D-Ore.) related to force-placed insurance. The amendment, in its current form, would prohibit lenders from receiving any kind of fee or reimbursement in connection with insurance they purchase on behalf of a borrower who lets the insurance lapse. (See Tuesday News Now story: NFIP delay bill one of CUs' interest items this week.)