The statutory authority to issue flood policies pursuant to the National Flood Insurance Program (NFIP) expired at midnight, Monday May 31, 2010. This lapse in the NFIP statutory authority has an impact on the ability of companies to issue new policies, and process some renewal payments and increase in coverage endorsements. This hiatus is expected to last until at least June 8th.
Until the National Flood Insurance Program (NFIP) is renewed by Congress, each lender has the authority to determine how they will handle the hiatus. In some instances, lenders will close the loans and not require flood insurance for closing since it is currently unavailable. Other lenders will opt to close the loan with a copy of the check and the application since the policy cannot be issued. In some cases, lenders will not close a loan. Contact www.fiorellainsurance.com or call us at 772-283-0003 to learn more.
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