Your Victory on the NFIP Reauthorization

A message from NAR President Moe Veissi:

YOU DID IT! Late last week Congress finally acted on one of your key legislative priorities, a five-year reauthorization of the National Flood Insurance Program (NFIP). Even better news, we just received word that the president is expected to sign it into law tomorrow, Friday, July 6, 2012.

All the D.C. pundits said  nothing would be accomplished in an election year!  You just proved them wrong because you didn’t give up, and now you have the victory to confirm it!

The reason I’m writing this today is to reinforce the commitment of your National Association to you and every other member who expects us to persevere on issues of importance to our members and your clients – the consumers, homeowners, and potential home owners of the future.

NAR, with your help and influence, stayed the course to give lenders and home owners more certainty in the mortgage and real estate market place with available flood insurance for existing home owners and those buying and selling.

This has been a long, arduous battle. The National Flood Insurance Program suffered through over 18 short-term extensions and hobbled along for the last four years without a long-term reauthorization forthcoming from D.C.

It was your charge to us not to give up, not to accept anything less than a long-term reauthorization of the Flood Insurance Program. So, we battled to get every inch along those short-term extensions until now when a full five-year reauthorization has been approved.

This fight traveled over several administrations and more than a few presidents of NAR.  I’m proud to represent them and the management team in this victory for you.

But, while I’m proud of my predecessors in leadership, and equally as proud of the most effective management team both in Chicago and D.C., I am especially proud of you!

When called upon to respond to our Calls to Action, you did. When asked to invest in your business, you have. And, when asked to step up and participate you resoundingly did that, too.

New battles lay ahead. There will be no easy victories. Now more than ever, it is our responsibility to be steadfast protectors of the American Dream of home ownership.  If not us who? If not now when? So, when we call on you like we did to rally, when we call on you like we do to respond to the calls for action, please; continue to show your commitment.

God bless you all.  You are what this country is all about! Rally on REALTOR® Party!

You truly are the heart of the deal… many thanks.

Moe Veissi
2012 NAR President

More at Congress Reauthorizes Flood Insurance for 5 Years

Stacey Moncrieff

Stacey is vice president of business-to-business communications for the National Association of REALTORS®, overseeing the association's key communications with NAR members and REALTOR® association executives.

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  1. Rosie Nash

    Is there any reprieve from the high cost of flood insurance? This is the first time I’ve sold a house that needed it and the costs are high–wow! At least twice as much as otherwise. And this at a house that has a creek running 20′ below and 200′ away. The owners have lived there for 20 years and have never had a problem with flooding, not even in the basement. It seems excessive to me that it is in a flood plain. This is in SW Michigan…Are there any alternatives?

  2. Robert Shiff

    The government can do this after they decided to expand areas that were never or should never be in a flood plain. Many townships in Michigan immediately saw 15% of useable acreage “condemed” to pay higher flood insurance. The pot gets bigger and the homeowner gets poorer. More goverment control costs everyone (except the government).

  3. randy

    yah hoo

    now get banks to lend and make some real difference.

  4. Prakash R

    The national food insurance program is something new to us in Malaysia. How does this help homeowners?

  5. Dale Palkki

    There is an awful lot of celebratory rhetoric and congratulatory comments in this article and so I can only assume that something fantastic has occurred that will benefit homeowners and the realtor community. As a relatively new realtor you’ll have to excuse my ignorance but I don’t know what it means to have a “five year authorization of the NFIP”. This article would have been much more meaningful (at least to me) had it gave an explanation of exactly how this grand event benefits us/me. Could you please elaborate? Thank you.
    Dale Palkki,
    Associate Broker

  6. Meg White

    Hi, Dale.

    Congress has been slow to act on reauthorizing the NFIP program (just as it has with almost everything else lately!). As a result, it’s been very difficult to close real estate transactions in affected areas. For more, see this piece:

    Here’s a news report on the five-year authorization to which President Veissi is referring in this post:

    For some more in-depth history on the program, take a look at NAR’s topic page on the subject:

    Thanks for your interest,
    Meg White
    Multimedia Web Producer at REALTOR® Magazine


    How much does it cost the tax payers that have more sense than to build in a FLOOD ZONE?

    If they want to build in a FLOOD ZONE, best wishes but don’t involve me.

    Lotus Plott

  8. I confess my ignorance regarding NFIP program, but just recently, talking to one of my past Clients who lived in the same house for 20 years, never had even a close experience of flooding, now are faced with $360 additional expense, because they are forced, I mean forced, to buy the Flood Insurance,

    I will read the above info. regarding this program, but so far, I do not think this is a matter to celebrate… Upset Homeowners are a sign of a negative effect! And, yes, this is, no doubt, “More government”! Tell me, please: “Do we need more government”? I’d like to hear your response.

    Thank you!

    Broker Associate

  9. Meg White

    Hi, Mira

    Our own Rob Freedman published a more comprehensive follow-up about the reauthorization here, and what it means for the industry:

    And, as I noted above, NAR’s topic page on the subject is here:

    Hope that helps,
    Meg White
    Multimedia Web Producer at REALTOR® Magazine

  10. Doug Stohlman

    Why did Congress take so long to authorize? And why for only 5 years? If it was a good deal and free to the taxpayers, why would anyone not support it? Into eternity…

    What my mind is telling me is that it isn’t free to the taxpayers, meaning the majority of taxpayers are again subsidizing a minority of fairly well off landholders who choose to live in a flood area and want the rest of us to defer their risks.

    Seems like same ole same ole to me… and why the US is in such a mess.

    Doug Stohlman
    Principal Broker Southern Oregon

  11. Kurt VanLeeuwen

    Is this a federally subsidized program? If so, what does it cost taxpayers? I also wonder why there isn’t a similar requirement for earthquake insurance. I live in an earthquake zone and pay for earthquake insurance which essentially doubles my premium.