House passes flood bill extension

A bill to extend the authority for the National Flood Insurance Program (NFIP) to Sept. 30, 2010 has been passed by the U.S. House of Representatives. Lenders have refused to close loans on properties that required flood insurance, since the insurance program expired May 31. The bill would make flood insurance coverage retroactive and would include all approved applications since that date. The bill heads to the U.S. Senate for their vote. Several industry trade associations recently submitted a letter to Congress urging them to immediately reauthorize the NFIP, which expired May 31. It is estimated that more than 1,350 closings per day are affected by the lapse in the NFIP, according to the Federal Emergency Management Agency (FEMA) and the National Association of Realtors (NAR).