I
112th CONGRESS
1st Session
H. R. 1430
IN THE HOUSE OF REPRESENTATIVES
April 7, 2011
Mr. Nunes (for himself, Mr. Chaffetz, and Mr. Paul) introduced the following bill; which was referred to the Committee on Financial Services
A BILL
To require regulated lending institutions, Federal agency lenders, and Government-sponsored enterprises for housing to accept flood insurance coverage provided by a private entity that otherwise meets the requirements for the mandatory purchase of flood insurance to accept such flood insurance coverage as satisfaction of such requirements.
Short title
This Act may be cited as the
Flood Insurance Choice Act
.
Use of private insurance to satisfy requirement to purchase flood insurance to receive a mortgage loan
Section 102(b) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(b)) is amended—
in paragraph (1)—
by striking
lending institutions not to make
and inserting
lending institutions—
not to make
;
in subparagraph
(A), as designated by subparagraph (A) of this paragraph, by striking
less.
and inserting less; and
; and
by adding at the end the following new subparagraph:
to accept private flood insurance as satisfaction of the flood insurance coverage requirement under subparagraph (A) if the coverage provided by such private flood insurance meets the requirements for coverage under such subparagraph.
;
in paragraph (2),
by inserting after provided in paragraph (1)
the following new
sentence: Each Federal agency lender shall accept private flood
insurance as satisfaction of the flood insurance coverage requirement under the
preceding sentence if the flood insurance coverage provided by such private
flood insurance meets the requirements for coverage under such
sentence.
;
in paragraph (3),
in the matter following subparagraph (B), by adding at the end the following
new sentence: The Federal National Mortgage Association and the Federal
Home Loan Mortgage Corporation shall accept private flood insurance as
satisfaction of the flood insurance coverage requirement under the preceding
sentence if the flood insurance coverage provided by such private flood
insurance meets the requirements for coverage under such sentence.
;
and
by adding at the end the following new paragraph:
Private flood insurance defined
In this subsection, the term private flood
insurance
means a contract for flood insurance coverage allowed for
sale under the laws of any State.
.