By Jason Stverak
A home purchase can be delayed when a buyer cannot secure the flood insurance needed to close. For military families already at their new duty station, a last-minute delay can mean extending a hotel or Airbnb stay and paying more for storage. Federal flood insurance adds a problem they cannot control.
Congress should keep the program authorized without interruption, FEMA should provide clearer maps showing where flooding is likely, and lenders should help buyers identify coverage requirements and costs early, before families move.
Our members come to us for help making a home possible, understanding the costs, and keeping the keys when circumstances change. For defense credit unions, that relationship often continues through deployments, repeated moves, and the transition to civilian life. Service does not end at closing.
Mapping What Matters
That is why FEMA’s plan to improve its flood maps matters so much to our movement. As POLITICO reported October 23, the agency wants to give families a more complete picture of flood danger. A map should help a homeowner understand the risk, including hazards that do not fit neatly inside an existing flood-zone boundary.
Better information is welcome. But credit unions know what happens when insurance becomes uncertain or unaffordable. The National Flood Insurance Program, or NFIP, helps make mortgage financing possible in flood-prone communities. Repeated expiration threats and lapses can leave members scrambling for coverage and lenders trying to keep transactions together. A family can do everything right and still face a delayed closing.
DCUC has stayed engaged because affordable housing depends on dependable insurance. We have pressed congressional banking leaders for long-term, uninterrupted NFIP authorization. Our June 2025 letter called for better mapping and mitigation while warning against premium increases that could push families out of coverage. We also supported NFIP extension legislation before the House Financial Services Committee in December, emphasizing the need to prevent mortgage disruptions.
Understanding the Consequences
During the 2025 government shutdown, we kept member credit unions informed, brought leaders together through our Military Advocacy Committee, and publicly warned that the NFIP suspension could derail military families’ home purchases and sales. Credit unions were offering financial counseling, payment flexibility, and other assistance as families faced broader shutdown pressures. DCUC worked to make sure Washington understood those consequences.
We carried that message into our April 2026 congressional letter on reinsurance, linking insurance availability directly to affordable mortgage credit and military housing needs. In an August op-ed, I again called for an end to the congressional uncertainty surrounding flood coverage. Throughout this work, we have urged reliable coverage, affordable premiums, and responsible reforms that protect members and taxpayers.
That advocacy reflects something defense credit unions understand: housing stability helps families focus on the demands of service. A delayed military move can mean storage bills, temporary lodging, or two housing payments. Veterans settling into civilian life need room in their budgets, too. For someone living on retirement or disability income, another insurance bill can force difficult choices.
Consider This Hypothetical
Consider a hypothetical $1,200 annual flood premium. That is another $100 each month. It could reduce what a young military family qualifies to borrow or make an existing mortgage harder to manage. If buyers pull back, sellers may struggle as well. Credit unions must understand those pressures before a member calls worried about the next payment.
That is why this conversation must include credit unions from the start. We can explain how insurance changes affect mortgage applications, how families manage tight budgets, and where practical assistance could keep a responsible borrower on the path to homeownership.
FEMA’s announcement is a request for ideas, not an immediate new insurance mandate. The agency says it will retain regulatory flood hazard boundaries while adding better information. A changed flood zone does not automatically raise an existing policy’s rate. But future map revisions can trigger coverage requirements for previously uninsured homes. We need clear explanations and time to prepare.
Where Credit Unions Can Start
Credit unions can start by reviewing pending mortgages and existing loans where maps may change. Ask vendors how they track revisions, when alerts arrive, and who follows up. Check loans approaching closing. Look beyond the mapped boundaries when assessing risk. Protecting the credit union’s mortgage portfolio helps protect every member whose savings support its lending.
Then pick up the phone. Explain possible changes before an official notice arrives. Help members understand the full monthly cost, compare eligible NFIP and private coverage, and ask insurance professionals about available discounts. Make outreach accessible to deployed members and spouses handling finances at home. A clear conversation with a trusted credit union can prevent confusion from becoming a financial crisis.
Our teams also need sound servicing procedures, including required notices, coverage checks, and timely action when insurance is missing. Pair that discipline with help: housing counseling, referrals to local floodplain officials, and sensible financing for improvements that reduce flood damage. Review lending decisions carefully so new information supports responsible access instead of unnecessarily shutting out lower-income members.
Bring Your Receipts
FEMA is accepting responses through December 10, 2026, and plans a mid-November industry day with virtual participation. Credit unions should bring examples of borrower costs and military relocation challenges. Congress must provide durable NFIP authority and targeted affordability assistance. FEMA and NCUA should deliver workable guidance, advance notice, and fair correction procedures.
I want better flood maps to help our members make confident decisions. That means pairing accurate information with coverage families can afford and credit unions equipped to guide them. We keep fighting through NFIP uncertainty because homeownership matters to those who serve. We must bring that same commitment to the changes ahead.
Jason Stverak is chief advocacy officer with the Defense Credit Union Council.
