MBA's Quinn Calls for Quick Conference on Flood Insurance Bill

Kieran P. Quinn, CMB, Chairman of the Mortgage Bankers Association (MBA) today welcomed Senate passage of S. 2284, The Flood Insurance Reform and Modernization Act of 2008, and called on House and Senate leadership to quickly begin negotiations to reconcile the two chambers' bills so that a bill can advance to the President's desk this summer.

Quinn issued the following statement:

'MBA strongly supports a long-term reauthorization of the National Flood Insurance Program, forgiveness of FEMA's debt to the Treasury and an increase in the coverage limits for multifamily properties. An affordable flood insurance program is crucial to communities across our nation.

We do have concerns with some specific provisions of the bill the Senate passed today and we hope members of the House Financial Services Committee and the Senate Banking Committee quickly begin negotiations to reach a compromise.

In particular, we hope negotiators will look carefully at the increased penalties for non-compliance, the mandatory purchase provision for state chartered institutions, the creation of a reserve fund, the prerequisite for mandatory escrow, new requirements around pre-FIRM and residual risk properties and new disclosure obligations.

We fear these provisions may have the unintended consequence of limiting the availability and increasing the cost of insurance for many who need it. Therefore, we look forward to working with members of the House and Senate to come up with a bill that can pass both chambers and the President can sign into law.'