Pending Government Shut Down And Home Loans

There are a lot of questions revolving around what potential impacts the pending government shutdown could have on mortgages.

 

Our lenders continue to evaluate impacts that could result from a pending government shutdown. Please keep in mind as the situation is continually developing, we will be communicating relevant updates and policy changes as necessary to continue with business operations. At this point, here’s what we know:

• All conventional loan operations will continue business as usual as Fannie Mae and Freddie Mac are not directly impacted by the government shutdown.
o If any information is released from the conventional agencies Movement will communicate any updated guidance or impacts.

• In the event of a shutdown, VA and FHA will be operating under their contingency plans and loans can be processed, underwritten, closed, and insured as normal.  Potential Impacts for Each As Follows:
* For FHA there can be impacts as follows:
* Loans that require prior approvals from FHA will not be eligible.
* Response to questions will be limited or delayed due to the limited staffing within the HUD offices.
* HECM loans may be impacted due to insuring halts, but we will follow the guidance from our investors on that.
* For VA there can be impacts as follows:
* Loans that require prior approvals from VA will not be eligible.
* Verification of Benefits form if sent to VA may not be able to be processed or returned with additional information.

* If the borrower or Movement has issues with the Certificate of Eligibility (COE) issued from the automated system, then there could be delays in resolving these inaccuracies which could delay the loan closing.

• In the event of a shutdown USDA will not be issuing new commitments. Closings would be suspended for all USDA loans without a commitment. USDA loans with a commitment may proceed to closing as normal.

Connect with our lenders to get your questions answered!