April 17, 2021

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Mortgage News

new private flood rule offers hope and raises concern

Joe Rossi is the chairman of the Massachusetts Coastal Coalition.

At the end of 2020, the Ministry of Housing and Urban Development published its proposed regulation for the adoption of private flood insurance for the insured loans from the Federal Housing Administration. Currently, the Federal Housing Administration is one of the few loan programs that does not accept private flood insurance for property in high risk flood areas. The Federal Housing Administration currently only accepts flood insurance through the National Flood Insurance Program.

Lenders, real estate agents, insurers, first-time buyers, and others using the Federal Housing Administration for a mortgage have been waiting for the Federal Housing Administration to start accepting private flood policies. While the announcement of the regulation proposed by the Federal Housing Administration made headlines and gave many hopes, the proposed rule in its written form is also cause for concern.

More:OPINION: Coastal connection: At the end of 2020 we are looking at a busy legislative year in 2021