NFIP Lapses Once Again
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On March 4, 2010, we announced in a blog the extension of the National Flood Insurance Program (NFIP) through March 28, 2010. Guess what? It has expired again but this time Congress didn't extend the NFIP before taking their recess. In fact, we understand Congress will not reconvene until April 12th. This will leave lenders at a standstill for two weeks! You might want to take a look at FEMAs announcement on Friday, March 26th. For special guidance and recommendations while this is in transition, please also read FEMA's memo dated October 27, 2009.
Once again, we remind all of you that if you have a loan secured by property in a Special Flood Hazard Area, you cannot close the loan as you cannot obtain flood insurance at this time.