PARAMOUNT MORTGAGE - LENDER'S BLOG

The National Flood Insurance Program Set to Expire Again

The National Flood Insurance Program, known as the NFIP, lapsed March 28 this year and left many pending home sales in limbo.

Congress and President Barack Obama temporarily reinstated the program 18 days later on April 16 as part of a bill that also extended unemployment benefits and Medicare reimbursement for doctors.

However, the temporary extension of the NFIP legislation will expire again on May 31.

The stage has now been set for another lapse in funding for the program just weeks before the mandatory June 30 closing deadline for buyers attempting to satisfy the requirements of the federal $8,000 first-time and $6,500 repeat homebuyer tax credits.

Federally guaranteed mortgages backed by Fannie Mae, Freddie Mac, the FHA and the VA, on homes located in floodplains require flood insurance to close. The NFIP backs the flood insurance issuers.

The recent 18-day lapse in the NFIP is the third since December, with each one growing in duration. The December interruption lasted nine hours, the February pause lasted two days.

Without another legislative extension of the NFIP by the end of the month, some home buyers may not be able to close on their properties.

The National Association of Realtors estimates a one-day lapse adversely affects 1,400 closings nationwide.

Paramount Mortgage Expands to Florida and Texas

Paramount Mortgage is now licensed to make residential mortgage loans in Florida and Texas.

Expanding into two of the largest housing markets in the country comes right on the heels of another significant milestone; the company's 40-year anniversary in February.

Paramount has continued to expand nationwide since 2008 "From St. Louis to Seattle" adding offices in Seattle, Washington, Chicago, Illinois and Northern Idaho. "Our corporate approach generates the repeat business that fuels our growth," stated H. John Frank, Jr., President of Paramount Mortgage.

"We have never forgotten that this is a people business and we treat our clients with respect," continued Frank.

"Our customer-first attitude is a main factor in Paramount's sustained operation as an independently-owned mortgage company over the past 40 years. Home buyers in Florida and Texas will get to know our team and 'Expect Excellence' as we provide exemplary customer service to borrowers in these new markets."

For more information, please contact your Paramount Mortgage Banker.