Prof. Daniel Schwarcz Quoted by CNN Business About the Government Shutdown Affecting Flood Insurance Policies

Professor Daniel Schwarcz was quoted by CNN Business about how the government shutdown could adversely affect the housing market with slower mortgage approvals, stalled rural home loans, and a freeze on new flood insurance policies. With the U.S. in the midst of the hurricane season, Prof. Schwarcz said the National Flood Insurance Program (NFIP), which is backed by the Federal Emergency Management Agency and offers federally backed flood insurance to homeowners, isn’t able to write new policies during the shutdown. He said, “If you already have an insurance policy, it’s still in effect. The shutdown affects the ability of the NFIP to actually renew an insurance policy or issue a new policy, but it doesn’t undermine the validity or enforceability of an insurance policy that’s already been issued.”