Legislation that would authorize the use of private flood insurance on Fannie Mae and Freddie Mac mortgages was overwhelmingly approved by the House late last month, but concerns about its potential impact are beginning to crop up.

The Consumer Mortgage Coalition is arguing that the bill has serious flaws by allowing private insurers to undercut pricing on federal flood insurance policies by offering high deductibles and exclusions to homeowners with mortgages guaranteed by the government-sponsored enterprises.

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