A day after withering pressure from industry and legislators came against ruling by the Federal Emergency Management Agency (FEMA), the agency reversed course, ending a policy that could have put as many as 1,400 home closings a day in jeopardy during the federal government shutdown.
Trade associations and legislators reached out to FEMA, urging the agency to reverse its determination that the agency cannot issue new contracts for flood insurance under the National Flood Insurance Program (NFIP), nor renew current policies, because of the lapse in funding during the shutdown.
Read on for more details, about the situation and its resolution.