A demand by a House Financial Services subcommittee chairman that bank regulators move quickly to impose a rule requiring mortgage lenders to accept private flood insurance is prompting a split in the insurance industry.
The letter sent to federal bank regulators by Rep. Randy Neugebauer, R-Texas, said that the provision's intent "is to reaffirm and support pre-existing requirements that lenders accept comparable private flood insurance policies" as an alternative to policies offered by the National Flood Insurance Program.
He says, "I believe that once fully implemented, this provision will further encourage private-sector participation in the flood insurance market and reduce the risk to which the U.S. taxpayer is currently exposed.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
- Educational webcasts, resources from industry leaders, and informative newsletters.
- Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.