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HUD Secretary: FHA Won't Require Terrorism Insurance

Wednesday, October 23, 2002 - 1:45AM

Reassuring the housing industry that U.S. Department of Housing and Urban Development (HUD) will not follow the lead of many private insurance companies, HUD Secretary Mel Martinez announced yesterday that the Federal Housing Administration (FHA) will not require insurance coverage against acts of terrorism as a condition of its multifamily mortgage insurance. In fiscal year 2001, FHA committed $1.5 billion toward ensuring multifamily programs for construction and rehabilitation, and in fiscal year 2002, FHA upped its commitment to $2.8 billion. In the event of an act of terrorism that destroys or partially destroys an FHA-insured multifamily property, Martinez says HUD would pay the partial or full claim to the lender.

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