Extension of the NFIP
By David Dickinson
If you are not subscribed to our E-newsletter, we sent out an announcement earlier today about the extension of the National Flood Insurance Program (NFIP). It was set to expire on September 30, 2008; however, President Bush signed a budget resolution last night temporarily extending the NFIP until March 6, 2009.
Earlier this year, the Senate and House both passed bills with some major changes to the NFIP; however, there are several differences between the bills that must be resolved. The biggest is the House's version which covers wind damage (what is a hurricane: a flood or wind damage?). The two houses have not resolved these differences yet and with everything else going on lately, I can see how this isn't a priority right now. Hopefully, they will be able to resolve the differences between the bills and reauthorize the program for a longer period.
Here's an interesting article from the Wall Street Journal's "Market Watch" discussing the House and Senate bills, as well as their differences. Also, you can learn more about the expiration/extension of the NFIP by reading this string from BankersOnline Lending forum.
If you have any questions about the NFIP extension, contact Mira Marshall, Chief, Compliance Policy Section of the FDIC Division of Supervision and Consumer Protection at (202) 898-3912.
These are interesting times (to say the least).