Congress GOP Members Urge FHFA to Reconsider Homeowners Insurance Rules

Congressman Addison McDowell of North Carolina led a coalition of over 45 GOP members in urging the Federal Housing Finance Agency (FHFA) to reconsider its recent guidance that mandates Replacement Cost Value (RCV) insurance coverage for homeowners with federally backed mortgages.

The coalition expressed concerns that limiting insurance options to RCV policies could reduce affordability and create barriers to homeownership, particularly for families in rural areas with lower property values. They advocate for allowing flexibility with Actual Cash Value (ACV) policies, which they argue better meet certain consumers' needs. Several industry organizations, including the National Association of Mutual Insurance Companies and the Independent Insurance Agents & Brokers of America, support this initiative.

These groups view the FHFA's policy as an overreach that restricts consumer choice and potentially raises insurance costs. The letter reflects broader industry and legislative engagement on insurance policy parameters tied to mortgage lending, highlighting the ongoing dialogue on balancing consumer protection with access and affordability in homeowners' insurance.

This policy review could have implications for insurance providers, mortgage lenders, and regulators aiming to calibrate coverage requirements with market realities. McDowell's leadership in this effort also aligns with his legislative activities and fundraising disclosures, indicating active involvement in housing and insurance regulatory issues.