Removing Barriers Blog

Uncertainty at NFIP, FHA as Shutdown Continues - UPDATED
Posted December 27, 2018 by CUNA Advocacy

After first indicating the government shutdown would prohibit them from underwriting flood insurance policies under the National Flood Insurance Program (NFIP), officials at the Federal Emergency Management Agency (FEMA) reversed course under pressure from lawmakers in coastal states. In updated guidance issued FEMA announced that “all NFIP insurers have been directed to resume normal operations immediately,” and advised “that the program will be considered operational since December 21, 2018.” 

Meanwhile, the Department of Housing and Urban Development (HUD) issued its own guidance regarding the ability of the Federal Housing Administration (FHA) to underwrite new FHA loans during the shutdown. In a FAQ document accessible here, HUD explains that while FHA will be able to endorse single family loans (except FHA-backed reverse mortgages) during the shutdown, the time to endorse these loans could be extended due to limited staff availability, potentially delaying closings of single family FHA loans. 

CUNA will continue to monitor the situation at each of these agencies and provide the best available guidance as it becomes available for credit unions that offer either FHA or NFIP-backed mortgages to their members.