FEMA’s ruling followed the last-minute renewal of the National Flood Insurance Program (NFIP), which was set to expire on Dec. 21 but has been renewed through May 31, 2019
. Shannon McGahn, NAR’s Senior Vice President of Government Affairs, criticized FEMA’s action as being “contrary to Congressional intent” and dangerous to homeowners that rely on the NFIP.
“Last week, Congress passed legislation to fully reauthorize the NFIP through May,” said McGahn. “However, today’s surprise FEMA ruling jeopardizes tens of thousands of home sales across America, as NAR estimates up to 40,000 closings are disrupted each month that the NFIP cannot issue flood insurance policies. NAR will continue carefully reviewing this ruling and we remain in communication with Congress and FEMA to remedy the situation as quickly as possible.”