Time's ticking for flood insurance
December 20, 2002
NAR advises Realtors to submit applications no later than Dec. 30
Inman News Features
The National Association of Realtors today issued a statement advising Realtors who have closings in January on properties located in a flood plain to submit applications and premiums for flood insurance to their insurance agent or to the Federal Emergency Management Agency no later than Dec. 30.
Congress adjourned at the end of November without reauthorizing certain provisions of the National Flood Insurance Program for 2003, including authorization relating to issuing new policies.
The National Flood Insurance Program expires on Dec. 31, and the federal government will not be able to write new flood insurance polices, or renew or change coverage on existing policies after that.
Congressional leaders have told NAR officials that renewal of the flood insurance program will be a top priority for the new Congress when it convenes Jan. 7, 2003. It is expected that the NFIP will be reauthorized retroactively from Dec. 31.
Fannie Mae and Freddie Mac, which purchase mortgages on the secondary market, have indicated they will continue to purchase mortgages during the lapse and are expected to issue guidelines this week. The Federal Housing Administration will also continue to insure loans for its properties
Copyright: Inman News Service