Courtesy of The National Association of REALTORS®
In a critical win for home sales while the partial shutdown of the
federal government is ongoing, the Federal Emergency Management Agency
will issue and renew flood insurance policies, reversing an unexpected
and controversial ruling the agency released earlier this week.
"FEMA and the Administration deserve credit for hearing our concerns
and acting swiftly to address them," says NAR President John Smaby.
"This new decision means thousands of home sale transactions in
communities across the country can go forward without interruption, as
Congress intended when it renewed the flood insurance program earlier
this week. Our research has shown that 40,000 home sales are lost every
month that flood insurance is not available."
Congress on Dec. 21 passed legislation that extends the National Flood Insurance Program until May 31, 2019.
In an unexpected policy decision, though, FEMA on Dec. 26 said it
couldn't allow insurers to issue and renew federal policies while the
partial government shutdown was ongoing. That ruling was unexpected
because in past government shutdowns, FEMA continued to operate the
program as authorized. NAR, along with other organizations, including
the Property Casualty Insurers Association of America and the
Independent Insurance Agents & Brokers of America, urged policy
makers to reevaluate the decision. Congress expressed concern as well.
"We thank the Administration and Congress for stepping up so quickly
to ensure the smooth continuation of flood insurance at a time when
market disruption would be extremely hard-felt," says Shannon McGahn,
NAR senior vice president of government affairs.
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