HOW WILL THE SHUTDOWN AFFECT THE MORTGAGE PROCESS

Dated: 01/22/2018

Views: 276


The current government shutdown has far reaching effects including the mortgage industry.  There may be some disruptions to closings as follows:

 

The IRS and SSA have temporarily ceased operations.  As a result, tax transcripts and SSN verifications will be unavailable until government operations resume.  We will consider loans requiring transcripts and SSN verifications on a case by case basis if we have any flexibility for proceeding with closing.

As usual, loans for borrowers who are W2 employees do not require transcripts.

 

Fannie Mae and Freddie Mac are not affected by the shutdown.

 

FHA/Ginnie Mae – we think that HUD and Ginnie Mae will retain much of their functionality and FHA loans should not be affected short term.  The FHA Resource Center will be operational but on a limited basis.

 

VA – in previous shutdowns, the VA has been exempt and has continued with full functionally.

 

USDA – we believe that the shutdown will impact Rural Housing’s ability to issue loan commitments and to guarantee loans closed with outstanding commitments.  We plan to continue closing RD loans that have already been issued a commitment.

 

There is another vote today at Noon in the Senate for a Continuing Resolution to resume government operations for another three weeks while an appropriations bill can be negotiated and passed.  If the CR is passed, it would still need to be approved by the House and the President.

 

We will keep everyone posted as more information becomes available.


Blog author image

Ana Natasha Ferguson

ANA (A New Approach) it is not only my name it is my way of life. I understand the significance of real estate decisions and its impact on people. Therefore, I help clients make informed real estate d....

Latest Blog Posts

Maryland Residents Love This Dog Breed The Most

Americans love their dogs and there's no dog a pet owner loves more than their own. But when it comes to breeds, Americans have their favorites and for the 27th straight year, the Labrador retriever

Read More

How Much Snow Did You Get

Parts of Maryland were projected to get more than a foot of snow in the latest nor'easter that hit during the first two days of spring. So what were the actual snow totals from Wednesday, March 21

Read More

Fed Announces Rate Hike

Fed announces rate hike decisionThe Federal Reserve’s governing board announced today that it was raising the benchmark interest rate, fulfilling the expectations of market watchers.There was

Read More

Good Neighbor Next Door Program

ARE YOU A TEACHER FIREMAN EMT OR POLICE OFFICER LOOKING TO PURCHASE??Good Neighbor Next Door Program:If so, you may qualify for HUD's Good Neighbor Next Door Program which couldSAVE 50% &

Read More