Government Shutdown Progresses
As we head into another week of the government shutdown many people are noticing the importance of all parts to the government. Real estate agents need to be aware of how the market will look as the government shutdown progresses.
Many lenders require tax return transcripts for a variety of loans, including FHA and VA loans. Since the Internal Revenue Service (IRS) is closed and suspending the processing of all forms, delays are expected as the shutdown continues. However, many loan originators are putting in place revised policies to help with the processing and closings.
Mortgage processing also includes verifying Social Security numbers through the Consent Based SSN Verification Service. The Social Security Administration is closed and has suspended most customer service functions, complicating the mortgage processing.Many lenders are changing their policies during the shutdown to help with the mortgage process.
The Bureau of Indian Affairs will not be processing or recording any property transactions on Leased Indian Tribal Land during the shutdown as well.
The FHA will endorse new loans in the Single Family Mortgage Loan Program but will not take any new loans in the Multi-family Program. The FHA is still operational in paying claims and collecting premiums, but delays are to be expected in the processing as the government shutdown progresses.
The VA Loan Guaranty program will continue to process and guaranty mortgages, but delays are expected.
Fannie Mae and Freddie Mac, along with the Federal Housing Finance Agency will continue to operate because they are not reliant on appropriated funds from the government.
As the government shutdown progresses, we are going to experience a delay in the different areas of real estate. Anybody buying or selling a home should expect the process to take a longer amount of time than usual.