As some of you are aware, both FLTA and ALTA have been monitoring this issue closely. The National Flood Insurance Program (NFIP) has lapsed eleven times since Sept. 30, 2008. (12 counting this week) Each lapse has delayed thousands of closings and caused considerable uncertainty for buyers, sellers and lenders. These disruptions cost title and escrow businesses’, lenders’, and consumers’ time, money and unnecessary worry.
What is less widely known, is that earlier this month, FLTA sent a delegation of 10 of our members to Washington DC to join the ALTA team in visiting legislators to express our concern that the NFIP might lapse again.
We expect another short-term extension of the program. Months ago, the House of Representatives passed a five year extension of the NFIP by a bi-partisan majority; the Senate declined to vote on the long term extension. Two weeks ago, seeing no action on the Senate side and knowing the deadline was fast approaching, the House approved a 30 day extension of the program. Last week, the Senate approved a 60 day extension.
We are in a position where the bills from both sides must be reconciled, voted on and sent to the President for signature. We are cautiously optimistic that this will be completed before May 31 so that there is not another lapse in the program.
Our thanks to Aaron for carrying this important message (albeit in a highly edited form) to the public.