Magazine article Mortgage Banking

MBA Supports TRIA Extension

Magazine article Mortgage Banking

MBA Supports TRIA Extension

Article excerpt

MBA SUBMITTED A STATEMENT TO THE JOINT hearing of the House Financial Services Committee's Subcommittee on Capital Markets, Insurance, and Government-Sponsored Enterprises (GSEs), and the Subcommittee on Oversight and Investigations, supporting extension of the Terrorism Risk Insurance Act of 2002 (TRIA) "make-available" requirement. Wayne Abernathy, assistant secretary for financial institutions of the U.S. Department of the Treasury; Gregory Serio, superintendent, New York State Insurance Department; and Richard Hillman, director, financial markets and community investment, U.S. General Accounting Office (GAO), testified at the hearing.

In its statement, MBA strongly supported extension of the TRIA "makeavailable" requirement. If the Treasury Department does not extend the "makeavailable" language by Sept. 1, 2004, insurers will not be required to offer terrorism coverage after Dec. 31, 2004. Additionally, commercial real estate capital could become less available and more expensive.

"The extension of TRIA's 'make-available' language is needed urgently and must happen before Sept. 1, 2004," said Gail Davis Cardwell, MBA's senior vice president, commercial/multifamily. "If the TRIA program expires, a significant coverage gap can be expected for insurance against foreign terrorist attacks, and that would compromise America's vigilance against terrorism."

A 2002 MBA survey of commercial mortgage originators showed approximately $8. …

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