HOW WILL THE SHUTDOWN AFFECT THE MORTGAGE PROCESS

Dated: 01/22/2018

Views: 372


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

30Minute Closet

Even if you don't live in an area where temperatures vary seasonally, organization experts recommend "editing" your closet each season. With this handy six-step guide you can get it done in just

Read More

The Cost Of Selling Without A Real Estate Agent

You’ve heard of buyer’s remorse; but without your market expertise and sales skills to back them up, sellers who choose to sell their home on their own just may experience “seller’s”

Read More

School Schedules Year Round School Schoolyear Vacations

Date Details Days August 20 (M) Administrative & Supervisory Personnel Meeting Pupil: 0Teacher: 8 22 (W)

Read More

5 CRITERIA FOR PRICING A HOME

When you put your home up for sale, one of the best ways to determine the asking price is to look at comparable sales. There’s rarely a perfect apples-to-apples comparison, so a pricing decision

Read More