Due to congress failing to to approve a Continuing Resolution which provides funding for many government operations, the spending authority expired at midnight on January 19, 2018.

 

So what exactly does that mean for you?

 

Since there was a failure to pass the law, many government and federal housing and mortgage programs have either been shut down for the time being or slowed.

 

The National Association of Realtors staff reviewed the mandatory agency contingency programs for the current shutdowns for the following:

 

National Flood Insurance Program (NFIP)

 

  • NFIP will not be allowed to issue or renew policies

  • Existing policies will not be affected until 30 days after exp. Date

  • Existing policies will be able to be resumed and claims processed per usual

 

Federal Housing Administration (FHA)

 

  • FHA will endorse new loans for the Single Family Mortgage Loan program (not HECM loans)

  • No new commitments to Multi-Family Program

  • Paying claims, collecting premiums, loss mitigation (programs) are still in effect

    • Expect delays in processing

 

Government Sponsored Enterprises

 

  • Federal Housing Finance Agency, Fannie Mae, Freddie Mac in the past have resumed normal operations

  • Fannie and Freddie are expected to announce relaxed procedures

    • Relaxed requirements would not apply to loan modification refinancings

       

Rural Housing Programs

 

  • Department of Agriculture will not  issues rural housing Direct or Guaranteed loans

  • Direct Loans closing will not occur

  • Scheduled closings of of Guaranteed loans will be closed at lender’s risk

 

VA Loan Guaranty Program

 

  • Will be in operation

 

IRS

 

  • Closed and suspended the processing of all forms including tax return transcripts

  • FHA and VA do not require transcripts, but expect delays if shutdown is protracted

 

Social Security Administration

 

  • Closed and most customer service function suspended

  • Verification of SSA numbers through Consent Based SSN Verification Service will be suspended

  • Income verification will vary due to lenders

  • Fannie Mae and Freddie Mae expected to adopt policies to allow for closing subsequent verification and before GSE purchase

 

For more information visit: National Association of Realtors

 

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