Short Term Extension for National Flood Insurance .......... PASSES

By
Mortgage and Lending with George Souto NMLS #65149 FHA, CHFA, VA Mortgages Connecticut NMLS #65149

This week Congress passed H.R. 5569, this is the Bill that that everyone has been waiting months for to extend National Flood Insurance Program (NFIP).  Unfortunately it only extends it to September 30, 2010, which means that the House and Senate will have to continue to address this issue as we begin to approach that date.

The good news is that the Bill is retroactive to May 31, 2010, the day the lapse began. While the issuance of new and renewed flood insurance policies can resume, we can't help but to be concerned about the long term re-authorization of the NFIP and whether the industry will face once again another lapse in a three months.

Let's hope that Congress and the Senate wake up to the fact that Buyers will not be able to obtain Mortgages in Flood Designated Areas without Flood Insurance.  This would be one more set back that the Housing Industry has to avoid at this time

 

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Valerie Osterhoudt 07/02/2010 10:06 PM
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Show All Comments
Rainmaker
1,229,536
Al & Peggy Cunningham Brokers, Brampton Ontario Homes For Sale 905-450-5500
RE/MAX Realty Services Inc. - Brampton, ON

There just always seems to be a hitch out there for everyone to deal with George. The hiccups continue. Cat lying in an American Flag hammock

Jul 02, 2010 05:48 PM #1
Rainmaker
591,126
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

"Bill is retroactive to May 31, 2010"

I am not! I'm nostalgic.

I wounder what the bill, H.R. 5569 will do by being retroactive? Pay claims on uninsured properties? Back date closings?

I wouldn't be to worried about September 30, 2010, that's so close to election day they wouldn't dare let it lapse. No Congress will extend it unanimously then claim they over came the Republicans!

Bill

Jul 02, 2010 06:21 PM #2
Ambassador
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages Connecticut - Middletown, CT
Your Connecticut Mortgage Expert

Al and Peggy, yep, it would make to much sense to do it right the first time.

Bill the reason to make it retroactive is to cover claims for existing homeowner that incurred loses during that time.  As far as Closings go, they will not back date them, but now they can finally approve and Close on loans that have just been sitting there waiting for this Bill to be passed.  We have Buyers that have not been able to Close the whole month of June, because they could not obtain Flood Insurance.

Jul 02, 2010 07:19 PM #3
Rainmaker
591,254
Valerie Osterhoudt
Johnson Real Estate, Inc. - Cromwell, CT
ABR, Cromwell, CT Real Estate ~ 860.883.8889

George.. Thank you.  For all the bad news that is out there, I think it is great that you can give us a little hope that things can go right.

Jul 02, 2010 09:57 PM #4
Ambassador
1,446,371
Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

George, not being able to secure flood insurance would certainly have a negative impact in the areas at risk.  We are confronted with so many issue, I don,t think things will ever be the same again.

Have a great weekend.

Jul 02, 2010 10:34 PM #5
Rainmaker
291,725
Philip Turner
MCCUE MORTGAGE COMPANY - New London, CT
Mortgage Banker Since 1980

George - I am glad this finally made it through.  I have one client who was not able to close because of this and was potentially losing his tax credit because of the hold up on the flood insurance. Phew.

Jul 04, 2010 01:27 AM #7
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages Connecticut - Middletown, CT
Your Connecticut Mortgage Expert

Valerie we do need a little ray of sunshine every once and a while.

Jennifer this to will pass, and we will look back and say do you remember when ............

Phil I got lucky and I did not have anyone that was affected by this, but if it had happened a couple of months before it would have.

Jul 04, 2010 09:58 PM #8
Rainmaker
291,725
Philip Turner
MCCUE MORTGAGE COMPANY - New London, CT
Mortgage Banker Since 1980

Withthe lack of rain lately, we probably don't have to worry about flood insurance anyways. Watch out - now that I have said this it will probably pour for the next two weeks.

Jul 05, 2010 11:37 AM #9
Rainmaker
710,582
Ann Hayden
Berkshire Hathaway HomeServices Select Properties-St. Louis Missouri - Wildwood, MO
SelectAnn.com

George,

This should help those people who need flood insurance...

Ann Hayden in Wildwood, MO

Jul 06, 2010 07:44 AM #10
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George Souto

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