H.R. 1430 – Reading Mode

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—

(1)

in paragraph (1)—

(A)

by striking lending institutions not to make and inserting

lending institutions—

(A)

not to make

;

(B)

in subparagraph (A), as designated by subparagraph (A) of this paragraph, by striking less. and inserting less; and; and

(C)

by adding at the end the following new subparagraph:

(B)

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.

;

(2)

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.;

(3)

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

(4)

by adding at the end the following new paragraph:

(5)

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.