Effective immediately, the Federal Emergency Management Agency will allow operations of the National Flood Insurance Program to resume, even while the government remains partially shut down, the agency announced today. The move was retroactive to Dec. 21, ultimately leaving no lapse in NFIP availability.
The American Bankers Association, along with members of Congress and other trade groups, strongly objected to FEMA’s surprise decision earlier this week halting regular operations, despite Congress’ passage and the president’s signature of a bill to reauthorize the NFIP before the shutdown began.
ABA applauded FEMA’s action today. The association has emphasized in its public statements that suspending the sale and renewal of NFIP policies could complicate and potentially delay loan closings for borrowers seeking mortgages where NFIP coverage is required.