Congressional Budget Office Cost Estimate: H.R. 5114: Flood Insurance Reform Priorities Act of 2010   [open pdf - 43KB]

"H.R. 5114 would authorize the National Flood Insurance Program (NFIP) of the Federal Emergency Management Agency (FEMA) to enter into and renew flood insurance policies through fiscal year 2015. Under current law, that authority will expire at the end of May 2010. In addition, the legislation would make several changes to the NFIP, which would increase premium income. […]. By raising certain civil penalties on lending institutions, CBO estimates that enacting the bill would increase revenues by about $1 million per year. Pay-as-you-go procedures apply because enacting the legislation would affect revenues. […]. CBO estimates that the changes made to the NFIP by H.R. 5114 would yield additional premium income of $2.8 billion for insurance policies that FEMA can offer under current law. However, CBO estimates that those receipts would be spent to pay insurance claims expected under current law, resulting in no net change to direct spending over the 2011-2020 period. H.R. 5114 would impose an intergovernmental and private-sector mandate, as defined in the Unfunded Mandates Reform Act (UMRA), on public and private mortgage lenders. Because the mandate would require small changes in existing disclosure requirements, CBO expects that the cost to comply with the mandate would be small and fall well below the annual thresholds established in UMRA for intergovernmental and private-sector mandates ($70 million and $141 million in 2010, respectively, adjusted annually for inflation)"

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