Both the House and the Senate Friday passed bipartisanlegislation that includes a five-year extension of the National Flood Insurance Program. The House passed the billwith a 373 to 52 vote, while the Senate passed the bill 74-19. Thepackage awaits signature by President Obama; he is expected to signit over the weekend.

Among the reforms are those that eliminate subsidized floodinsurance rates for vacation and second homes, properties with repetitive floodclaims and commercial properties.

“Today's action by the Congress provides credit unionswith certainty for the future of the National Flood InsuranceProgram for the foreseeable future. CUNA and credit unions havebeen encouraging Congress to approve a multi-year authorization forseveral years for this important program,” said CUNA President/CEOBill Cheney.

Cheney said the NFIP was been subjected to nearly a dozenshort-term extensions since the last time it was granted along-term extension. In some instances, Congress has allowed theprogram to lapse, which had complicated the mortgage lendingprocess.

“Congress' action will ensure that credit unions – and theconsumers that they serve – can have a much greater degree ofconfidence in the lending process and the prospect of financingtheir homes,” Cheney said.

The bill was introduced by Rep. Judy Biggert (R-Ill.), who serves as Chairman of the HouseFinancial Services Subcommittee on Insurance, Housing and CommunityOpportunity. According to a House release, the bill has beena priority for the Republican leadership of the Financial ServicesCommittee since they gained control of the panel in January2011. The bill passed the House nearly a year ago, butprogress on the final version of the bill was slowed in theSenate.

Without action by Congress, the NFIP would have expired July 31and left millions of homeowners, renters and businesses without away to insure their properties against devastating floods. Since 2008, Congress has passed 17 short-term extensions of theNFIP and allowed the program to lapse four times. More than40,000 home sales were stalled during the program's most recentlapse in June 2010, according to the National Association ofRealtors.

“NAFCU has been an active advocate for long-term reauthorizationof the NFIP, which is vitally important to the U.S economy andhomeowners nationwide. The passage of this bill willboost confidence in the housing market for lenders and homeowners,”said NAFCU President/CEO Fred Becker, Jr.

Other provisions in the omnibus package include highway fundingand a one-year extension of the current, 3.4% rate cap on federallysubsidized Stafford education loans. The Stafford loan rate cap wasscheduled to double to 6.8% July 1 without congressionalaction.

Both the House and the Senate are in recess next week inobservance of the Independence Day Holiday July 4.