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#2156705 - 12/08/17 10:14 PM NFIP reauthorization
Sewanee, CRCM Offline
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Perhaps it has slipped past me, but does anyone know if the NFIP has been extended beyond today's date, December 8, 2017? The September extension kicked the can down the road a bit to today, but I can't find whether the continuing resolution until December 22, 2017 includes the NFIP.
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Flood Compliance
#2156708 - 12/08/17 10:17 PM Re: NFIP reauthorization Sewanee, CRCM
rlcarey Online
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It was included.
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#2156710 - 12/08/17 10:32 PM Re: NFIP reauthorization rlcarey
Sewanee, CRCM Offline
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Thanks.
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#2157958 - 12/20/17 08:26 PM Re: NFIP reauthorization Sewanee, CRCM
Vicki DB Offline
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If the NFIP is not reauthorized past December 22, 2107, does that mean you cannot close on a loan that is in a flood zone?

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#2157984 - 12/20/17 09:49 PM Re: NFIP reauthorization Sewanee, CRCM
David Dickinson Offline
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No. It means there is no NFIP policy available. You still give a notice, but if NFIP insurance is not available, you can make a loan with flood insurance. That's not true for many investor loans, however.

You can always require private flood insurance.
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#2157992 - 12/20/17 10:00 PM Re: NFIP reauthorization Sewanee, CRCM
rlcarey Online
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Here is a old FIL that addresses this when the NFIP looked like it was not going to be reauthorized in time by the FDIC back in 2010.

https://www.fdic.gov/news/news/financial/2010/fil10023.pdf
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#2158215 - 12/22/17 03:22 PM Re: NFIP reauthorization Sewanee, CRCM
Bville Offline
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any news on this today?

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#2158217 - 12/22/17 03:28 PM Re: NFIP reauthorization Sewanee, CRCM
rlcarey Online
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The actual text of the budget extension to Jan 7th is not available yet, but it was supposed to be included.
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#2158244 - 12/22/17 05:09 PM Re: NFIP reauthorization Sewanee, CRCM
Bville Offline
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That's a temporary relief!

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#2158287 - 12/22/17 08:03 PM Re: NFIP reauthorization rlcarey
Reads Regs Offline
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I think this bill extends the government funding from 12/22/17 to 1/19/18. https://www.congress.gov/115/bills/hr1370/BILLS-115hr1370enr.pdf
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#2158893 - 01/02/18 05:23 PM Re: NFIP reauthorization Sewanee, CRCM
Tarhe Online
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California
From FEMA's Website: National Flood Insurance Program: Reauthorization

This page provides information related to reauthorization of the National Flood Insurance Program (NFIP) to inform NFIP policyholders, industry partners, government officials, and other stakeholders.

Congress must periodically renew the NFIP’s statutory authority to operate. On December 22, 2017, the President signed legislation passed by both houses of Congress that extends the NFIP’s authorization for four more weeks. It previously had been set to expire at midnight on December 22, 2017.

Congress must now reauthorize the NFIP by no later than January 19, 2018.

Flood insurance – whether purchased from the NFIP or through private carriers – is the best way for Americans to financially protect themselves from losses caused by floods.

As affected communities begin recovering from the devastating impacts of Hurricanes Harvey, Irma, and Maria, a timely, multi-year reauthorization is critical for insured survivors and businesses. NFIP policyholders need confidence not only that FEMA can pay flood insurance claims, but also that it will have the ability to sell and renew policies to help them protect against future flooding.

FEMA and Congress have never failed to honor the flood insurance contracts in place with NFIP policyholders. In the unlikely event the NFIP’s authorization lapses, FEMA would still have authority to ensure the payment of valid claims with available funds.

However, FEMA would stop selling and renewing policies for millions of properties in communities across the nation. Property owners who are required to have flood insurance would be unable to complete new mortgage transactions. The National Association of Realtors estimates that a lapse might result in the delay or cancellation of approximately 40,000 home sale closings per month nationwide.


Last Updated:


12/26/2017 - 11:44

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#2161225 - 01/22/18 01:19 PM Re: NFIP reauthorization rlcarey
Summer101 Offline
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So, am I correct that the NFIP is officially lapsed as of right now since H.R. 195 has not yet been passed?

DIVISION B—EXTENSION OF CONTINUING APPROPRIATIONS ACT, 2018
SEC. 2001.
The Continuing Appropriations Act, 2018 (division D of Public Law 115–56) is amended—
(1) by striking the date specified in section 106(3) and inserting “February 16, 2018”

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#2161232 - 01/22/18 01:44 PM Re: NFIP reauthorization Sewanee, CRCM
rlcarey Online
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#2161262 - 01/22/18 03:22 PM Re: NFIP reauthorization Sewanee, CRCM
Reg Booster Offline
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So how does a Bank handle renewal policies that need to be issued? For new policies, I understand that we have to delay closing?

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#2161265 - 01/22/18 03:30 PM Re: NFIP reauthorization Sewanee, CRCM
rlcarey Online
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You don't have to delay closings. There is no insurance available. There is nothing to purchase.

Read this: https://www.fdic.gov/news/news/financial/2010/fil10023.html#body
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#2161268 - 01/22/18 03:47 PM Re: NFIP reauthorization Sewanee, CRCM
Burgess Offline
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so this is different from the government shut down.
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#2161269 - 01/22/18 03:54 PM Re: NFIP reauthorization Sewanee, CRCM
rlcarey Online
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Not really - all one and the same
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#2161289 - 01/22/18 04:48 PM Re: NFIP reauthorization Sewanee, CRCM
Nanda Offline
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Our team was on an ABA Open Compliance Committee call on 1/17/18. The following was provided.

On our call yesterday, Diana discussed the remote possibility that if the Congress does not approve a continuing resolution to keep the Government open by this Friday, the NFIP will lapse since it is part of the funding package. In the event a lapse of the NFIP occurs here are several links providing guidance from FEMA, OCC, and the FDIC.

FEMA guidelines on lapse - https://nfip-iservice.com/Stakeholder/pdf/bulletin/w-17069.pdf (December 15, 2017)

FDIC/OCC issued guidance on lapses in 2010, reapplies in the case of future lapse: https://www.occ.gov/news-issuances/bulletins/2010/bulletin-2010-20.html (6/10/10) and https://www.fdic.gov/news/news/financial/2010/fil10023.html (5/7/10).

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#2161420 - 01/23/18 02:16 AM Re: NFIP reauthorization Nanda
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CNN is reporting that President Trump just signed HR 195 that includes a provision to fund the government through February 8th.
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#2161487 - 01/23/18 04:21 PM Re: NFIP reauthorization Sewanee, CRCM
Tessie Offline
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Have a couple question.
Since they did not reauthorize NFIP, does this mean,
we still do the flood cert - but after January 19th they will not have flood insurance, unless they buy from another source?
are existing policies covered if there is a flood after January 19th?
if and when they reauthorize - will it be effective on that date or effective January 20th?
Any renewals after January 19th will not be covered?

Thank you!

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#2161491 - 01/23/18 04:29 PM Re: NFIP reauthorization Sewanee, CRCM
rlcarey Online
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It was reauthorized when the President signed the continuing resolution.
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#2161516 - 01/23/18 05:30 PM Re: NFIP reauthorization Sewanee, CRCM
David Dickinson Offline
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Tessie: Here's a blog I wrote on this topic yesterday:

https://www.bankerscompliance.com/national-flood-insurance-program-expires/
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#2161553 - 01/23/18 08:00 PM Re: NFIP reauthorization David Dickinson
Tessie Offline
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Thank you Dave

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