The National Association of Realtors (NAR) is working to protect the real estate economy as a government shutdown appears increasingly likely by Oct. 1 if Congress does not pass stopgap spending measures. Without a deal to fund the government by the end of the fiscal year on Saturday, an array of government services critical to the real estate sector will come to a halt. NAR chief advocacy officer Shannon McGahn noted, “Our advocacy team is in continuous contact with lawmakers over how this shutdown will affect the real estate sector, which makes up nearly 20% of the entire U.S. economy.” One of the most impacted programs during a government shutdown is the National Flood Insurance Program (NFIP). Flood insurance is required for federally insured mortgages, and nearly five million property owners rely on the program. NAR launched a targeted call to action for its federal political coordinators in an effort to reach and educate every member of Congress about the NFIP this week. NAR estimates that a lapse in NFIP authorization could threaten 1,300 property transactions per day. “However, existing policies won’t begin to expire during the first 30 days of a shutdown, and those policies can be transferred from sellers to buyers after a lapse,” McGahn says. “So, again, the longer the shutdown, the more harm done.” Read more at Realtor Magazine.
Source: NAR; 9/26/2023