House passes bill to reauthorize terrorism risk insurance program

Investing

The U.S. House of Representatives passed the Terrorism Risk
Insurance Program Reauthorization Act of 2019, a bill that will reauthorize the
Terrorism Risk Insurance Act for seven years.

The bill, H.R. 4634, passed in a House vote of 385-22. It
was previously passed unanimously in the House Financial Services Committee,
where Rep. Maxine Waters, D-Calif., introduced the bill.

“The Terrorism Risk Insurance Act was enacted in the
aftermath of the tragic September 11 terrorist attacks, which resulted in the
largest insured losses on record from a non-natural event,” Waters said. “Insurance
and reinsurance companies reeled from the losses, and terrorism risk insurance
became unavailable or extremely expensive, complicating the recovery effort due
to the importance of insurance in many business transactions.”

Treasury data show the program has been successful, with
nearly 80% of all TRIA-eligible policies including terrorism risk coverage, and
policyholders paying an average of only 2.5% of their total premiums for
terrorism risk coverage.

The Senate Banking Committee will be considering identical
legislation this week – S. 2877.

The housing industry is backing the legislation, saying it
is vital to the health of the commercial and multifamily real estate finance
sector.

“MBA commends the House for its overwhelmingly bipartisan
passage of this legislation to reauthorize the Terrorism Risk Insurance Act
program for seven years,” said Robert Broeksmit, Mortgage Bankers Association president and CEO.

“The long-term extension of TRIA is vital to the health of
the commercial and multifamily real estate finance sector and the nation as a
whole,” Broeksmit said. “With $3.4 trillion in total mortgage debt outstanding,
members of the commercial/multifamily real estate finance sector are important
end users of the TRIA program and represent a large and integral part of the
national economy.”

The house also passed four other financial services bills,
including:

The Reforming Disaster Recovery Act of 2019 (H.R. 3702): A bipartisan bill that would permanently authorize the Community Development Block Grant-Disaster Relief program and strengthen administration and oversight of the program to ensure disaster relief is distributed efficiently and equitably. This bill was introduced by Rep. Al Green, D-Texas, chairman of the Subcommittee on Oversight and Investigations and Rep. Ann Wagner, R-Mo., and passed by a vote of 290-118.

The Tribal
Eligibility for Homeless Assistance Grants Act of 2019 (H.R. 4029): A bill
to address homelessness among Native Americans and Alaska Natives by making
tribes and tribally designated housing entities eligible for McKinney-Vento
Homeless Assistance Grant funding. This bill was introduced by Rep. Denny Heck,
D-Wash., and passed by a voice vote.

The Fostering Stable
Housing Opportunities Act (H.R. 4300): A bill that would help to ensure
that youth who are aging out of foster care and are at risk of homelessness
will have critical assistance to help them achieve housing stability and
self-sufficiency. This bill was introduced by Rep. Madeleine Dean, D-Penn., and
passed by a voice vote.

The Investor
Protection and Capital Markets Fairness Act (H.R.4344): A bill that would
substantially strengthen the authority of the Securities and Exchange
Commission to recover the wrongful gains of securities law violators for
investors. This bill was introduced by Rep. Ben McAdams, D-Utah, and passed by
a vote of 314-95.
The post House passes bill to reauthorize terrorism risk insurance program appeared first on HousingWire.