First, the “loss” of $1.59 Billion is a false number. The exchange of homes results in a similar size mortgage replacing the prior mortgage on the house sold to buy the new house. The $439k average cost may replace a $380k house sold to move up to a new house. So, the “loss”, whatever that means, is $59k times the number of home sales.
Second, there is no “loss” due to the Fed Government shutdown. The Fed Government will eventually re-open, leading to a tidal wave of new mortgages at that time, over a few months after it for those delayed, not cancelled, mortgages to be processed. In other words, the transactions are delayed. Perhaps that’s also a good thing? Why? ….
Third, with the delay, not cancellation, in home sales, there will be time for potential buyers to find private flood insurance (WYO). Or, they may re-think their purchase and opt for a home outside a flood zone.
Fourth, if the NFIP happens to write fewer policies due to the shutdown, it will incur lesser losses. A Lose (PIF) – Win (less lost $) situation!
First, the “loss” of $1.59 Billion is a false number. The exchange of homes results in a similar size mortgage replacing the prior mortgage on the house sold to buy the new house. The $439k average cost may replace a $380k house sold to move up to a new house. So, the “loss”, whatever that means, is $59k times the number of home sales.
Second, there is no “loss” due to the Fed Government shutdown. The Fed Government will eventually re-open, leading to a tidal wave of new mortgages at that time, over a few months after it for those delayed, not cancelled, mortgages to be processed. In other words, the transactions are delayed. Perhaps that’s also a good thing? Why? ….
Third, with the delay, not cancellation, in home sales, there will be time for potential buyers to find private flood insurance (WYO). Or, they may re-think their purchase and opt for a home outside a flood zone.
Fourth, if the NFIP happens to write fewer policies due to the shutdown, it will incur lesser losses. A Lose (PIF) – Win (less lost $) situation!
Everyone should read this short book
Most Dangerous Superstition Paperback – January 1, 2011
by Larken Rose (Author)