New Flood Regulations

S. 2284 – Flood Insurance Reform and Modernization Act of 2007

• The National Flood Insurance Program (NFIP) was created in 1968 to provide federally backed property flood insurance coverage in the absence of available private insurance.
• The NFIP has grown significantly in the last 40 years, from an initial 1 million policyholders and $50 billion of risk to 5.4 million policyholders and $1 trillion of risk.
• Following the 2005 hurricanes, Congress increased the NFIP’s borrowing authority to over $20 billion to enable the program to pay hurricane-associated claims.
• The NFIP has demonstrated an inability to repay sums borrowed to pay hurricane claims. As a result, the legislation forgives nearly $20 billion in NFIP debt owed the Treasury.

Inaccuracies and discrepancies increase fines to lenders.
Call PDR today to avoid fees and fines imposed by the FDIC.