Melissa Klimkiewicz’s article, "Tossing life preservers into floodwaters: Next steps for the mortgage and flood insurance markets," featured in MBA Newslink
Mortgage Bankers AssociationMelissa Klimkiewicz
With the 2018 hurricane season kicking into gear--and with residual effects of 2017's devastating hurricanes in Texas, Florida and Puerto Rico still evident--flood insurance is very much on the minds of mortgage lenders and servicers. And with the National Flood Insurance Program set to expire (again) on July 31, the real estate finance industry is clamoring for action on Capitol Hill.
Just this past week, the Mortgage Bankers Association and other industry trade groups sent a letter to Capitol Hill lawmakers, calling for a long-term extension of the NFIP (preferably at least five years), along with an exemption for commercial and multifamily properties from the program's mandatory purchase requirements; and development of a more robust private flood insurance market.