“My greatest fear, and probably one of the most important things I can say to you today, is that existing homeowners with a mortgage who have their flood insurance premiums escrowed could face foreclosure as they are unable to afford the increase in escrow required to cover the new flood premium,” said Dean Asher, president of the Florida Realtors. “And, another round of foreclosures would be devastating.”

He said most sections of the bill “relating to rate changes have what you and I would call a 'glidepath' or 'phase in' to actuarial soundness – similar to what we have done successfully here in Florida with Citizens Property Insurance Corporation.”

Where there is not a glidepath specified in the flood reform act is for the new homebuyer, Asher said.

“This reform measure will, in effect, lock current homeowners into their property,”Asher said. “Homeowners won't be able to sell because no one will be able to afford to buy after they learn what the flood insurance premium will be.”

He called this, “definitely a glitch in the law,” given that Congress allowed for a glidepath for almost every other provision related to rate increases.

Asher said the proper approach would be for the immediate implementation of actuarial rates, instead of a phase-in, to be delayed until the Federal Emergency Management Agency completes a study of affordability issues.

At the same time, the House Financial Services Committee announced it will hold a hearing on the issue Oct. 9. The notice said the panel's Housing and Insurance Subcommittee will hold a hearing on the status of the NFIP at that time.