Federal Emergency Management Agency (FEMA) is a federal government agency of the United States created to lead America to prepare for, prevent, respond to and recover from disasters. It seeks to reduce the loss of life and property caused due to disasters which is achieved through preparedness programs, responses to disasters, emergency communications, and other programs. FEMA was created in On April 1, 1979. In 2003 it joined the Department of Homeland Security (DHS).
FEMA has stated its mission as follows:FEMA’s mission is to support our citizens and first responders to ensure that as a nation we work together to build, sustain and improve our capability to prepare for, protect against, respond to, recover from and mitigate all hazards.
Federal Emergency Management Agency
500 C Street S.W.
Washington, D.C. 20472
Phone: (202) 646-2500
National Flood Insurance Program (NFIP) offers federal flood insurance to homeowners, renters, and business owners if their community participates in the NFIP. It seeks to reduce the impact caused due to flooding through flood insurance and community floodplain regulations.
NFIP was created by U.S. Congress in 1968 and is managed by Federal Emergency Management Agency (FEMA).
Under NFIP, FEMA offers federally backed flood insurance in participating communities. The insurance may cover both property and the contents. FEMA does not directly sells insurance to homeowners; instead, flood insurance is provided to homeowners through flood insurance agents. The flood insurance agents may sell insurance either through NFIP Direct or through one of the Write Your Own (WYO) companies. Since 1978, the NFIP has paid nearly $50 billion for flood insurance claims and related costs (as of 2/17/15).
For a community to participate in NFIP, FEMA requires the community to adopt ordinances that meet or exceed FEMA requirements to reduce the risk of flooding. These may entail incorporating NFIP requirements into zoning codes, subdivision ordinances, building codes, or adopt special purpose floodplain management ordinances.
Write Your Own (WYO) Program from FEMA allows flood insurance companies to write and service the NFIP Standard Flood Insurance Policy in their own names. The WYO Program which was established in 1981 operates as part of the NFIP and is subject to its rules and regulations.
Mortgage Portfolio Protection Program (MPPP) provides flood insurance coverage that can be obtained by lenders for mortgage loans where the borrower has failed to obtain flood insurance at the time of origination. MPPP is a force-placed flood insurance purchased by the lender at the time of origination to enable the lender to be in compliance with the flood insurance requirements under federal regulations. MPPP is designed to be used only as a last resort for loans where the borrowers have failed to respond to various notices sent by the lender and has failed to obtain flood insurance. MPPP was established by FEMA on January 1, 1991. Insurance policies written under the MPPP can be placed only through a Write Your Own (WYO) Company.
The Mortgage and Rental Assistance (MRA) program offers financial assistance to eligible individuals that have lost their jobs and or businesses due to a national disaster and are at a risk of losing their primary residence. With respect to mortgages, FEMA offers to pay an amount equal to the mortgage payment to individuals that are unable to make mortgage payments and have received foreclosure notice or a notice of intent to foreclose. With respect to leases, FEMA offers to pay the rental payments to individuals that are unable to make the rental payments and have received the eviction notice. In both cases, the individual has to show that financial hardship exits directly due to a disaster and have received a notice of eviction or foreclosure. The intent of MRA program is to provide emergency assistance to individuals so that they can avoid being evicted from their primary residence.
Updated: Mar 04, 2016