FEMA today issued new guidance instructing insurers not to sell or renew flood insurance policies during the partial gov’t shutdown. This, despite Congress passing and the President signing legislation reauthorizing the National Flood Insurance Program last Friday through May 31, 2019.

NAR is leading a multi-industry effort, including insurers, lenders and other financial services groups to reverse this decision. We are also working with key members of Congress as well as the White House to intervene.

Today’s surprise opinion is being made under the Antideficiency Act (ADA), which generally prohibits federal expenditures/obligations in excess or advance of appropriations, except in cases of “emergencies involving … protection of property.”

NAR is arguing the opinion is contrary to the Congressional reauthorization and intent. NFIP is funded by premiums paid by policyholders, not appropriations so ADA should not apply. We have also provided NAR’s research that 40,000 home sales per month are at stake, which we believe would qualify for an exception under the ADA and allowing NFIP to resume the sale of flood insurance policies.

NAR will be following up with additional research and data.

We will keep you posted.