Flood Insurance Program In Jeopardy

By Caroline McDonald

NU Online News Service, Nov. 22, 4:15 p.m.EST?The U.S. House of Representatives today failed to voteto extend the National Flood Insurance Program, which a topofficial of the Independent Insurance Agents & Brokers ofAmerica said "could bring the real estate market to a grindinghalt."

Justin Roth, director of government affairs for the Alexandria,Va.-based IIABA, explained that the National Flood InsuranceProgram, set to expire Dec. 31, was not included as part of acontinuing resolution passed by the House of Representatives, whosesession concluded this afternoon. Earlier, the Senate had approvedan extension.

"I'm hopeful that Congress will make this their first prioritywhen they return from recess," Mr. Roth said. With this lame ducksession of Congress concluded, the new Congress will not conveneuntil sometime in early January.

"We don't view this as a small, little bill," he said. "This isobviously going to freeze the entire real estate market?in additionto causing serious problems for homeowners and agents."

Earlier, he had estimated that if the House did not pass theresolution extending the program, "over 130,000 mortgages wouldn'tclose due to this, just in the seven days alone [in January untilCongress reconvenes and has a chance to pass an extension]. And Godforbid there should be any floods for the seven days."

Mr. Roth explained that the Senate yesterday passed a bill,S-13, which would authorize the program to be extended for one moreyear. However, the House did not follow through in passing the samelegislation.

As well as the real estate industry, he said failure to pass thecontinuing resolution by the House would affect independent agentswho market the flood program to consumers.

The NFIP, he said, is "already starting to work on what theyhave to do now that it looks like this is reality."

The insurance industry, real estate groups and the FederalEmergency Management Agency all "frantically" tried to "avoidchaos" by attempting to get the resolution passed by the end oftoday, he said.

Mr. Roth said leaders of the House had promised members thatthey would not be asked to vote on any unanimous consentlegislation, and that making an exception for this bill would haveopened the door for other bills.