Survey Finds Support for TRIA
A survey of 40 commercial/multifamily mortgage banking firms by the Mortgage Bankers Association finds that all the 29 respondents favor the extension and reauthorization of the Terrorism Risk Insurance Act of 2002, the trade group reports.
The survey respondents, who together did more than $115 billion in debt financing for 2003, believe that a failure to re-enact the law will adversely impact the commercial/multifamily real estate market, the MBA said.
Twenty-eight respondents said that TRIA had made terrorism insurance more available, while 18 of 23 respondents who responded to a question about the cost of terrorism insurance believe that the legislation has made terrorism insurance less expensive.
And 23 of the respondents believe that prior to the passage of TRIA in November 2002, the absence of terrorism insurance had delayed or prevented some commercial real estate transactions.
Gail Davis Cardwell, MBA's senior vice president, commercial/multifamily, said, "The survey information we gathered from our commercial/multifamily members overwhelmingly shows the importance of TRIA for day-to-day business transactions. MBA urges the Treasury Department to extend the 'make available' provisions of TRIA to ensure continued availability of terrorism insurance, and urges Congress to reauthorize TRIA."
The Department of the Treasury is required to submit a TRIA impact study to Congress by June 30, 2005.
TRIA created a federal backstop for terrorism insurance coverage, limiting the losses to private insurers.
The legislation expires in December 2005 unless its timeframe is extended.
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