The Senate Thursday overwhelmingly passed and sent to the Houselegislation that would effectively delay for up to four yearsimplementation of flood insurance premium rate hikes imposed by a 2012 law. The vote was 67-32.

The National Flood Insurance Program has more than 5.6 millionsubscribers. The Senate acted under tremendous pressure of theunintended consequences of the Biggert-Waters Act of 2012, whichmandated imposition of actuarial rates for the NFIP over fouryears.

Sen. Heidi Heitkamp (D-N.D.) cited the case of one womanhomeowner in her state whose $60,000 NFIP policy was going to risefrom the current $625 to $10,600 in one fell swoop.

NAFCU was also a strong supporter of the bill. “TheSenate's adoption of S. 1926, introduced by Senator Robert Menendez(D-N.J.) is a welcome development for homeowners who without thislegislation would potentially face huge jumps in flood insurancepremiums,” said Dan Berger, NAFCU president/CEO.

He said NAFCU supports a delay in implementing rate increasesuntil such time that further study can be done to address how areasonable flood insurance program can be sustained.

“We hope that this legislation can be advanced in a timelymanner,” he added.

However, it is unlikely the Senate bill will pass the House inits present form, and there is some question how quickly the Housewill even act on any legislation ameliorating the rate hikes, eventhough bills implementing the new rates have been going out sincelast October.

Even the Consumer Federation of America voiced opposition, asdid officials of the National Association of Mutual InsuranceCompanies and the Property Casualty Insurers Association ofAmerica.

One congressional observer predicted that the House “will dragits feet for a while, and it's likely the Senate bill is firsttaken up through a hearing before the House Financial ServicesCommittee.”

Ray Lehmann, a fellow at the R Street Institute in Washingtoneven doubted that the Senate bill get a vote in the House, eventhough the bill has 185 co-sponsors in the House.

“If a bill makes it to the House floor, it will look like theamendment sponsored by Sen. Pat Toomey (R-Pa.),” he said.

That amendment was defeated by the Senate, 65-34.

The Toomey Amendment would cap annual rate hikes at 25% annuallyand pay for it by imposing a $40 on each NFIP policy, except forthose with incomes about $500,000 who can pay up to $80annually.

Toomey said in a statement that, “This ensures that subsidies inthe program are paid for within the program, protecting themajority of taxpayers who do not live in flood zones.”

The Senate bill is S. 1926, the Homeowner Flood InsuranceAffordability Act of 2014 and National Association of RegisteredAgents and Brokers Reform Act of 2014.

The bill would prevent flood insurance rate increases until theFederal Emergency Management Agency's mapping methods are certifiedas technically sound and an affordability study iscompleted. It would also keep in place phase-out of subsidizedflood insurance premiums for vacation homes and homes that have ahistory of repeated flooding.

The Senate rejected any amendments to the bill, including onethat would amend the definition of “private flood insurance” in the2012 Biggert-Waters Act that the latest bill seeks to amend byrestoring the discretion necessary to allow lenders, privateinsurers, and regulators to develop a functional private insurancemarket.

States and courts have been clamping down on the cost offorce-placed insurance, with class action lawsuits and actionsagainst mortgage servicers by state insurance regulators,especially in California, New York and Florida, and the decisionindicated that there was little support for further federalregulation of this product.

Opponents noted that the Consumer Financial Protection Bureauhad already been given authority under the Dodd-Frank Act to policethis insurance product.

“Literally thousands, tens of thousands of Americans will losetheir homes, middle class Americans, working class Americans, poorAmericans, if we don't pass this legislation,” Sen. Chuck Schumer(D-N.Y.) said on the Senate floor Thursday in urging support forthe bill.