Here’s the official word from our fearless leaders at Benchmark Mortgage… I imagine many lenders will have the same take on the situation. We expect that this will have minimal impact so long as this monkey business doesn’t go on too long. Fingers crossed.
“We do not foresee dramatic delays to our loan process, nor do we anticipate a sweeping impact of the government shutdown on our industry; however, there may be some circumstances where a few loans may be impacted (USDA in particular). We will address each loan individually in order to make sure we explore all options to continue forward progress for the pipeline with as little adverse effect as possible.
Here are some of the things that could be delayed by the Federal Government shutdown.
HUD / FHA:
The FHA should not be significantly impacted, providing the shutdown is brief. HUD has provided the following information that applies to our daily operations:
- FHA will be able to endorse single family loans, however, only a limited number of FHA staff will be available, so the process may take longer.
- Limited FHA staff will be available to respond to questions, emails or other correspondence.
- You will still be able to obtain a FHA case number from FHA Connection.
- CAIVRS and FHA Total Scorecard will still be available.
- Should FHA run out of commitment authority during a shutdown, then all lenders’ Lender Insurance approval will be temporarily suspended.
- Manual processes, like case number cancellations will be delayed.
Continue originating VA loans; the Department of Veterans Affairs (VA) will continue to operate if there is a government shutdown.
- Obtaining the veteran’s Certificate of Eligibility online through the webLGY will still be available.
- Submitting applications for new COEs and follow up on COEs requiring more research with the Atlanta Eligibility Center will still be available.
- Ordering appraisals the Veterans Information Portal will still be available.
Rural Housing / USDA:
Updates from USDA are not available at this time. They will likely cease issuing a Conditional Commitment until the shutdown is resolved.
Internal Revenue Service (IRS):
The IRS has indicated that they will not process any forms, including the issuance of tax return transcripts (Form 4506T) during a government shutdown, which will delay loan processing.
Social Security Administration (SSA):
In previous shutdowns, the SSA has only retained employees that deal directly with the processing of new claims and benefits. The likelihood is we would not be able to continue to verify SSNs through the SSA, which will delay loan processing.”
Long and short… life goes on despite the partial government shutdown. We just keep on keepin’ on.