Buyers of homes in Special Flood Hazard Areas will probably be unable to close on their purchases for the next few weeks due to the failure of Congress to reauthorize the National Flood Insurance Program (NFIP).
After passing the recent health care reform bill, Congress adjourned for recess–but in so doing, forgot to reauthorize the NFIP, which was scheduled to expire at midnight on the night of Sunday, March 28, 2010. NFIP is the program that issues flood insurance on homes that are in Special Flood Hazard Areas as determined by FEMA, and lenders require that any property in one of those flood areas have flood insurance before they will issue a loan for the property. As a result, buyers of those properties will not be able to close on their financing until such time as Congress renews NFIP; they are currently scheduled to reconvene on April 12, 2010, so hopefully NFIP will be renewed shortly thereafter.
Possibly related posts (automatically generated):
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- Upcoming Changes To Conforming Loan Limits
- Buyer-Paid Private Mortgage Insurance (PMI) now deductible.
- FHA announces plans to make FHA loans much less appealing
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on Mar 30th, 2010
@ 3:58 pm:
[...] Flood Insurance Unavailable Due Tο Congressional Error « Ethical Homes [...]
poco
on Mar 31st, 2010
@ 7:28 am:
POS congress, what kind of an answer is ‘forgot’… the way I run my business this would get you fired for not doing your job and yet we continue to support a dead ass congress.