WASHINGTON (11/21/11)--Congress extended the National Flood Insurance Program (NFIP) and returned Federal Housing Administration (FHA) loan guarantee limits to their previous ceiling when a minibus spending bill that would continue to fund the government was approved late last week.
The NFIP will continue to function until Dec. 16. Separate pieces of legislation that would extend coverage for another five years have been approved by both the Senate and the House, but there are differences between those two bills.
Language that was attached to the minibus spending bill allows the FHA to guarantee mortgages up to $729,750, or 125% of local median prices for single family homes, through Dec. 31, 2013.
The maximum conforming loan limit fell to $625,500 on Oct. 1 when a loan limit extension could not be agreed to by Congress. The Housing and Economic Recovery Act (HERA) of 2008 requires that Congress set maximum conforming loan limits each year.
The Credit Union National Association supported the NFIP extension and the FHA guarantee limit increase.
The NFIP and FHA related language was added to H.R. 2112, an appropriations bill for the Departments of Agriculture, Commerce, Justice, Transportation and Housing and Urban Development that also funds the government until December 16.