Last week, the U.S Senate voted to approve legislation extending the National Flood Insurance Program. The Program, set to expire September 30th, will be extended through November 21, 2019. This is the 13th reauthorization of the Program since the end of 2017.
A reauthorization gives the authority to provide new flood insurance contracts under the Program. This is significant because federally regulated institutions must require certain property owners to purchase flood insurance as a condition of mortgages if the property is identified as being in a Special Flood Hazard Area and is within a community that participates in the Program. Without the reauthorization, borrowers may not be able to obtain required covered to satisfy the lenders terms to obtain a mortgage.
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