On November 21, the Division of Housing and City Growth (HUD) issued a ultimate rule permitting non-public flood insurance coverage for FHA-insured mortgages in particular flood hazard areas. Learn NAR’s launch applauding HUD’s new rule.
Beforehand, solely Nationwide Flood Insurance coverage Program (NFIP) insurance policies had been allowed for FHA loans. Nonetheless, a broad NAR coalition helped persuade HUD that:
- many non-public insurers now supply greater high quality, decrease value choices than the NFIP, and
- FHA debtors shouldn’t be excluded from choices which have been out there to extra standard debtors since 2019.
Please observe that whereas the brand new HUD rule will considerably develop the flood insurance coverage selections out there to FHA debtors, not all non-public insurance policies will meet its definition of personal flood insurance coverage. NAR will proceed to work with Congress and the Administration to develop that definition as a part of a long-term NFIP reauthorization and reform measure subsequent 12 months.