After another lapse in coverage, trade groups urge Congress to pass long-term NFIP bill

Last week, the Mortgage Bankers Association (MBA) and 14 other trade groups representing insurance companies, lenders and other financial institutions urged Congress to approve a long-term reauthorization of the National Flood Insurance Program (NFIP).

In a letter to congressional leaders dated Dec. 2, the organizations said that millions of U.S. homeowners depend on the federally backed program for protection against floods, which are the nation’s most common and costly natural disaster.

The other organizations that signed the letter include the American Land Title Association (ALTA), the National Flood Association and the American Bankers Association, among others.

“As stakeholders representing real estate, insurance, lending, and state and local governments, we urge Congress to act decisively to ensure stability and certainty for the millions of Americans who rely on this vital program to protect their families and properties from flooding,” the groups wrote.

The NFIP has been extended 34 times through short-term measures since 2017, with lawmakers unable to agree on broader reforms.

During the recent government shutdown, NFIP lapsed, which halted new policies and renewals for more than a month — its longest interruption in nearly a decade.

Previous HousingWire coverage estimated that the lapse could have derailed 1,400 home sales every day of the shutdown.

NFIP’s current authorization expires Jan. 30, 2026.

“The unavailability of the NFIP for any period of time is highly disruptive to the mortgage and commercial lending processes, to the availability of financial and technical assistance to homeowners of repetitive loss properties, and to NFIP policyholders attempting to renew their expiring policies,” the letter stated.

The MBA said it will continue working with coalition partners to push for a long-term reauthorization that provides stability and extends the program well beyond the current fiscal year.