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The Senate Committee on Banking, Housing, and Urban Affairs recently convened a hearing as part of their ongoing efforts to secure a long-term reauthorization for the National Flood Insurance Program (NFIP). Over the years, the NFIP has received 28 extensions since September 2017, including short-term renewals and three brief lapses. With the most recent extension, Congress now faces the deadline of March 8, 2024, by which they must reauthorize the NFIP.


During the hearing, witnesses discussed the challenges posed by flooding and potential solutions for communities nationwide. A key topic of conversation centered around the consequences of an NFIP lapse. Michael Hecht, President & CEO of Greater New Orleans Inc., emphasized that if the NFIP were to lapse, it would lose the authority to issue new flood insurance contracts, and existing policies would not be renewed. The NFIP’s role in providing flood insurance contracts is crucial, especially considering the mandatory purchase requirement (MPR). This requirement obliges property owners to obtain flood insurance when securing mortgages backed by federal agencies, federally regulated lenders, or government-sponsored enterprises. While private flood insurance can now fulfill this requirement, its availability varies across the country and can be prohibitively expensive in certain states.


FEMA remains a strong advocate for a multi-year reauthorization of the NFIP. They continue to offer recommendations aimed at strengthening the program and supporting Congress in implementing meaningful reforms. These efforts aim to expand insurance coverage for more Americans, enhance affordability, and build resilience against climate-related risks. Earlier this month, FEMA announced its 2024 traditional reinsurance placement for the NFIP. Click here to read more.


If the reauthorization is not issued by 11:59 p.m. on March 8th, Proctor Loan Protector would like to draw attention to guidance previously issued by agencies that address lapses in FEMA’s authority under the NFIP. This guidance provides answers to frequently asked questions and entities’ responsibilities. For complete details, please review the guidance below:

Proctor Loan Protector will continue to monitor this topic and provide updates as they develop.