The Adverse Effect of “Mandatory” Flood Insurance on Access to Credit

One reason it might be an issue. is when you apply for a loan you get a preapproval letter with a upper limit on how much you can afford. usually that calculation wouldn't take flood insurance into account. So, when you go to apply for a loan and it has flood insurance in the calculation it could go over the debt to income required for the loan.

Also, people could balk at the cost of the insurance.

This is an early preview of some ongoing work and related to a series of papers.

I'll try and check in throughout the day and attempt to answer any questions if possible.

Since this work is ongoing, if there's anything specific here you'd like us to investigate further feel free to say so and we'll absolutely consider it.