Flood Insurance Choice Act

Flood Insurance Choice Act - Amends the Flood Disaster Protection Act of 1973 to require regulated lending institutions, federal agency lenders, and the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) to accept, as satisfaction of certain mortgage requirements for flood insurance, flood insurance coverage provided by a private entity that otherwise meets the Act's coverage requirements.

[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1430 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 1430

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.


_______________________________________________________________________


                    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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Flood Insurance Choice Act''.

SEC. 2. 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.''.
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