The Mortgage Bankers Association (MBA)
is the latest trade organization to criticize a decision by the Federal Emergency Management Agency (FEMA) not to approve or renew flood insurance policies
under the National Flood Insurance Program (NFIP) while the federal government is in the midst of a partial shutdown.
“I respectfully ask officials at FEMA to reconsider their decision not to issue new NFIP policies
or renew existing policies during the current shutdown,” said Robert D. Broeksmit, MBA President and Chief Executive Officer. “We have heard concerns from some MBA members that the inability to secure the required flood insurance may jeopardize loan closings. FEMA should reverse its decision. The longer this shutdown goes on, the more disruptive this decision will be.”
Also criticizing the decision was Rep. Maxine Waters (D-CA), the incoming Chairwoman of the House Financial Services Committee.
“I urge FEMA to immediately reconsider this harmful and incorrect interpretation of its authority and resume its important work of providing flood insurance to families across the country,” said Waters in a statement.