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Government Shutdown and Mortgages

Posted by The PerfectHouse Team on Tuesday, October 8th, 2013 at 3:31pm.

 

How is the government shutdown impacting mortgage loans?

The full impacts are largely speculation as this is an unprecedented event, we can't fully know what will be effected.


The current impacts are already being felt. VA and FHA loans are still being processed, insured, and guaranteed by the government, for now. Conventional loans are also still being processed. The problem is that there are a lot of third party verifications required to process mortgage loans.


The investors who fund mortgage loans require tax transcripts and SSN verifications for borrowers. Since the IRS and Social Security Administration are shut down, there is no way to get these verifications. 

Some lenders have issues notices stating that they will except loan applications without these verifications, but this is not across the board for all lenders, and there is no guarantee that this waiver will continue.


What can you do?

Be proactive! The PerfectHouse.com team is working closely with our partner, Advance Financial Group, to stay ahead of this. If you are working with a lender, get your paperwork in a soon as possible. This will allow them to start working with the processors early to try to get these loans to completion. As time passes, back logged loan application will also start to pile up, and when the government does decide to open for business again, all these applications will be processed in the order they were received, so it's best to get it in early.

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