Whats F.E.M.A?

Question

In regards to financing residential and commercial property, what does FEMA stand for?

Answer 1

The previous answerer was correct. However, you may have heard about FEMA relating to financing in regards to Flood insurance. FEMA administers the National Flood Insurance Program, which sets rates and regulations and determines which areas are Special Flood Hazard Areas (areas more likely to flood).

If you are going to own property in a Special Flood Hazard area and you are going to have a mortgage on that property you will be required to carry Flood Insurance on the property (with some exceptions).

Regarding the fires in CA, FEMA has the power to suspend all new financing closings until damage determinations are made. They don't want people closing on loans where the collateral property is a pile of ashes.

I'm sure they will institute re-inspections after the fires are under control, and financing will recommence.

Answer 2

Nothing. FEMA is the Federal Emergency Management Agency, an agency under the Department of Homeland Security. They manage activities following various disasters -- or at least that's what they did until Katrina.

They have nothing to do directly with financing of property.