HUD is proposing to amend Federal Housing Administration (FHA) regulations to allow private flood insurance on FHA-insured mortgages in satisfaction of the mandatory purchase requirement for properties located in Special Flood Hazard Areas. The National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.) requires the owners of properties located in a community participating in the National Flood Insurance Program (NFIP) to purchase flood insurance as a condition of receiving a federally-backed mortgage, provided that the property is mapped in a Special Flood Hazard Area (SFHA). The Biggert Waters Flood Insurance Act of 2012 requires the lending institutions, federal agency lenders, the Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac) to accept private flood insurance as satisfaction of the mandatory purchase requirement and flood insurance coverage requirement under the Flood Disaster Protection Act of 1973, as amended. Current FHA regulations do not allow private flood insurance as an option and requires mortgagors to obtain and maintain NFIP flood insurance for the duration of the mortgage, to the extent NFIP is available.