GAO Recommends FEMA Utilize Compliance Data, Update Floodplain Maps

The US Government Accountability Office (GAO) – a nonpartisan government audit agency – has released a new report, which recommends that the Federal Emergency Management Agency (FEMA) reconsider the mandatory purchase requirements of the National Flood Insurance Program (NFIP).

The NFIP requires homeowners with federally regulated mortgages to purchase flood insurance for properties that are situated in areas of high flood risk. However, GAO noted in its report that some of FEMA’s floodplain maps are outdated.

The agency also mentioned that FEMA’s floodplain maps also ‘do not reflect how climate change may affect flood risk.’

GAO also stated that under FEMA’s mandatory purchase requirement, homebuyers and owners cannot take loans out for their high flood risk properties unless their lenders can verify that they have flood insurance; at least 10 federal entities oversee lender compliance.

It was noted that regulators have frequently identified violations related to a lack of or insufficient flood insurance coverage for properties subject to the requirement.