TRIA Extension Bill Introduced

A bill has been introduced to extend the Terrorism Risk Insurance Act of 2002, which is due to expire by the end of the year, until 2007.The main sponsors of the Terrorism Insurance Backstop Extension Act of 2005 are Reps. Michael E. Capuano, D-Mass., Steve Israel, D-N.Y., Barney Frank, D-Mass., Paul Kanjorski, D-Pa., and Joseph Crowley, D-N.Y., according to the Mortgage Bankers Association. "There is a growing Hill recognition for the vital role TRIA plays in maintaining the stability of the commercial real estate finance industry," said Kurt Pfotenhauer, the MBA's senior vice president of government affairs. The trade association said it is "hopeful that the House Financial Services Committee can forge a bipartisan solution and act now to extend the program." In the absence of such a backstop, there may be fewer commercial real estate finance transactions, the MBA says. And servicers might have to "force-place" terrorism insurance, an action that could lead to litigation.