The House passed legislation trimming premiums for government-sponsored flood insurance that proponents say have dampened real estate markets in coastal areas.

Coastal-state lawmakers—backed by banking, homebuilding and real estate groups—say their constituents need relief from premium increases that resulted from 2012 legislation to cut the National Flood Insurance Program's $24 billion debt. Small-government groups say the bill is the latest example of the difficulty in enacting meaningful cuts in federal spending.

Subscribe Now

Authoritative analysis and perspective for every segment of the mortgage industry

30-Day Free Trial

Authoritative analysis and perspective for every segment of the mortgage industry