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Cassidy Applauds Senate Passage of Flood Insurance Extension

Press Release

Date: July 1, 2010
Location: Washington, DC
Issues: National Security

Louisiana Congressman Bill Cassidy praised the Senate for extending the National Flood Insurance Program, which allows FEMA to move forward with residential flood insurance policies that the federal government requires many Louisiana homeowners to purchase.

"The federal government requires homebuyers in flood-prone areas to have flood insurance, so it is incumbent on the federal government to ensure that it's available," said Cassidy. "Without this extension, many Louisiana families would be left in limbo. I appreciate the Senate's action on this issue, as do Louisiana home buyers, builders, and Realtors."

When the National Flood Insurance Program (NFIP) expired May 31, homebuyers in areas designated as a "special flood hazard area," which are prevalent in Louisiana, could no longer access flood insurance, and therefore no longer close on mortgages, renewals, and home equity loans.

According to the U.S. Office of Thrift Supervision, which regulates community lenders, "When Congress does not reauthorize the NFIP, the authority of FEMA to issue new flood insurance policies, issue increased coverage on existing policies, and issue renewal policies expires. At that point, borrowers are not be able to obtain NFIP insurance to close, renew, or increase loans secured by property located in a special flood hazard area ("SFHA") until the NFIP is reauthorized."

Louisiana Realtors Association CEO Malcolm Young, said, "When it got to the insurance issue -- meeting the flood insurance requirement -- homebuyers couldn't get it," said Malcolm Young, CEO of the Louisiana Realtors Association. "If they don't extend flood insurance, the market comes to a halt. If you look at any of the markets south of I-10, these markets would stop. What happened last night is great."

With Cassidy's support, the House extended the NFIP last week, sending the bill to Senate. After last night's Senate passage, the NFIP goes to the White House for the President's signature.


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