House GOP Leaders Seek TRIA Extension

Members of the House Republican leadership have sent a letter urging Treasury Secretary John Snow to extend the "make available" requirement of the Terrorism Risk Insurance Act until Dec. 31, 2005, the Mortgage Bankers Association has reported.According to the letter, TRIA has brought "greatly needed stability" to the insurance market. "However, this year's expiration of the 'make available' provision may likely cause the disappearance of a viable market for terrorism insurance," the GOP representatives say. "An inadequate supply of terrorism insurance could trigger bond downgrades, destabilize the capital markets, and sharply reduce the availability of loan capital for commercial real estate. Under this scenario, the cost of borrowing would increase, thus undermining economic and employment growth in the vital construction and real estate sectors." The MBA reported that the letter is signed by Rep. Roy Blunt, House majority whip; Rep. Deborah Pryce, chairman of the House Republican Conference; Rep. Eric Cantor, House chief deputy majority whip; and Rep. Thomas M. Reynolds, chairman of the National Republican Congressional Committee.