Once again the politicians in Washington are oblivious to the needs of the citizens they are supposed to be representing. We hear about bipartisanship and this is a situation that is truly bipartisan. Both parties are playing pure politics with the failure to extend the NFIP. This may not seem like a big deal to many folks, but by not having access to Flood Insurance the impact is rippling throughout our economy. Lenders will not close on loans without Flood Insurance in flood prone areas, which means every coastal community.
Are there some legitimate arguments against the NFIP as it is currently structured? Absolutely, it is $19 billion in debt. This is due to the fact it is like most insurance pools and funds regulated by a governmental agency, federal or state. The rates have not been adequate as it is a “take all comers’ program. This should not be a surprise as it is a government program with all the built in deficiencies that come with that structure. In the scheme of things in Washington when does $19 billion matter to a politician inside the “Beltway”. That is not the reason. The reason is everyone wants to pass the extension of the NFIP and it is a good “hostage” to hold to try and garner votes for other issues. This is why the politicians won’t do what is right and just pass some stand alone legislation.
Some legislators will try to use the argument it is an inefficient program and needs reforms. No argument here, but first things first. Our economy is in bad shape and historically in order for the economy to improve the housing sector must improve. As long as the NFIP is not extended the housing market cannot recover. This is proof positive our representatives in Washington do not care about the citizens, but only about their power. I believe the NFIP will be extended in the near future. I would hope they would extend it for at least five years so we can have continuity of the program. Continue reading “Slabbed takes a look at the current impasse in the NFIP: A Guest post by Supsalemgr”