WASHINGTON, November 22 (TNStalk) — The Mortgage Bankers Association issued the following statement on November 21, 2022:
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President and CEO of MBA Bob BroeksmitCMB, issued the following statement on the Department of Housing and Urban Development (HUD) Final Rule on Acceptance of Private Flood Insurance for Federal Housing Administration-insured mortgages (FHA).
“MBA applauds HUD’s decision to allow lenders to accept private flood insurance policies, a move we have long advocated for that will provide FHA borrowers who need flood insurance more choice and potentially better coverage at lower cost.
“The growing threat of flood damage in many areas presents a significant risk to homeowners and the FHA program. Acceptance of private flood insurance transfers some of the risk to the private market, which helps finally to protect FHA Mortgage Insurance Mutual Fund.
“While the final rule is a win for FHA borrowers, there are concerns that the lack of full alignment with federal flood insurance requirements could lead to some flood policies being rejected on loans. from the FHA that are acceptable for other federally backed loans.
“MBA will continue to work with HUD on improving housing policies and regulations that benefit borrowers while maintaining the safety and strength of the FHA program.”
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Original text here: https://www.mba.org/news-and-research/newsroom/news/2022/11/21/mba-statement-on-the-acceptance-of-private-flood-insurance-for-fha-insured- mortgages
