The U.S. House of Representatives today passed a short-term extension of the National Flood Insurance Program (NFIP), funding the program through Sept. 30, 2010. The extension still must pass the Senate, which now has two flood-insurance bills to consider.
Flood insurance is required for mortgages on properties in the 100-year floodplain. Congress has allowed the program to lapse three times this year, forcing many real estate transactions to be put on hold and, in some instances, cancelled. Fannie Mae and Freddie Mac both have provided guidelines for lenders to follow in order to close loans during the most-recent lapse. Some REALTORS® also have successfully obtained private flood insurance for clients during the lapse.
