CUs have 'vested interest' in Nat’l Flood Insurance Program stability
Credit unions have a stake in the ongoing stability of the National Flood Insurance Program (NFIP), CUNA wrote to House Financial Committee leadership this week. The committee conducted a hearing Wednesday to discuss reauthorization of NFIP.
“Credit unions play an increasingly important role in the housing finance market and, as a result, have a vested interest in the ongoing stability of the National Flood Insurance Program,” wrote CUNA President/CEO Jim Nussle. “Many credit union members, throughout the United States, live in communities designated as Special Flood Hazard Areas subject to mandatory flood insurance requirements and many of those same members rely upon the coverage offered under the program to insure against the risk of a natural disaster occurring.
Nussle said that for too long the NFIP has been a source of uncertainty and instability due to repeated lapses in its reauthorization and short-term extensions.
CUNA has consistently encouraged Congress to work on a long-term solution to enhance the affordability and ultimate sustainability of NFIP in order to restore certainty to the market.
“This hearing, which includes consideration of multiple proposals to reform, provide for a longer reauthorization of, and enhance the financial stability of the Flood Insurance Program, represents an important first step in the 116th Congress towards adopting meaningful legislation that can truly benefit credit unions and their members,” Nussle wrote. “It is vital that flood insurance premiums remain affordable so that families in those parts of the country where flood insurance is required are not deprived of the opportunity to own a home.”