As of Monday March 29, 2010 the National Flood Insurance Program has stopped issuing flood insurance policies for properties identified as being in a flood zone by FEMA. This is because Congress went on spring break and let the program expire without authorizing it’s extension.
Where this can really hurt is that anyone closing on a mortgage loan on a property located in an identified flood zone between now and April 12th when Congress reconvenes can not get a flood insurance policy. Now Fannie Mae and Freddie Mac have vowed to continue “originating” mortgage loans between now then, but good lucking finding a lender that will fund the loan until that policy is in place. This could leave many people across the U.S. in trouble.
Luckily for us, very few areas in Utah where homes are built are considered flood zones, so hopefully no Utahans will be affected by it. But still…
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