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Title: MBA’s Quinn Calls for Quick Conference on Flood Insurance Bill
Source: MBA
Date: 5/13/2008
Contacts:
Name:Phone:Email:
 John Mechem(202) 557-2924jmechem@mortgagebankers.org

WASHINGTON, D.C. (May 13, 2008) –  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, 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.”

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The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 370,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,400 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA's Web site:  www.mortgagebankers.org.