Attorney General Martha Coakley today filed an amicus brief in federal court arguing that FEMA failed to collect accurate data before rolling out its new rates. Coakley’s brief comes in support of a Mississippi lawsuit that alleges the new FEMA flood rates are arbitrary and unlawful.

"These new rates will devastate many families and businesses throughout Massachusetts. The federal government should delay these changes until FEMA has followed all the steps required by law," Coakley said in a statement. "In setting these new flood insurance rates, FEMA not only failed to evaluate their economic impact, but also failed to gather all the data required to ensure the new rates are accurate."

The brief, filed in U.S. District Court for the Southern District of Mississippi, asserts that the sudden jumps in flood insurance costs will increase the risk of a new wave of foreclosures, as struggling homeowners are hit with yet another significant mortgage-related cost.  In addition to failing to weigh the known consumer harm, the brief says that "FEMA ignored the opportunity to use tools provided by Congress," and has engaged in "bureaucratic ostrich headedness."

Last month, Coakley and House Speaker Robert DeLeo filed state legislation that would cap the amount of flood insurance mortgage lenders may require of homeowners.The proposed legislation, An Act Relative to Flood Insurance, would prohibit creditors from requiring homeowners to purchase flood insurance in an amount that exceeds the outstanding balance of their mortgage, requires coverage for contents or includes a deductible of less than $5,000. Homeowners would still have the option of purchasing a greater amount of insurance.