For Mortgage And Real Estate Pros:The Government Will Shut Down And Here's What You Need To Know

The following is the latest information available.

 There are still many areas of uncertainty,so please be aware that this information is subject to change. Additional information will be provided as it becomes available.

The following summarizes the anticipated impact to government agencies:

FHA

FHA Connection is expected to be operational and lenders should be able to obtain case numbers, perform CAIVRS checks, obtain insurance endorsements, and pay upfront MIP premiums.

Loans with a case file number, approved appraisal, clear CAIVRS and FHA approval(if test case)may close provided all other standard requirements are met.

Potential issues include:

 System issues preventing case #s from being obtained
 Support staff may not be available to assist with loan level issues
 Uncertainty concerning loans submitted for a case number but placed “On Hold”
 Uncertainty concerning the ability to obtain FHA Project Approval if project is not FHA approved
 Uncertainty concerning the ability to have a case number transferred from another lender

VA

Loans with an approved appraisal and clear CAIVRS may close (provided all other standard requirements are also met).

The VA has issued the following statement:

Impact: The VA Home Loan Guaranty Program will continue to operate as normal in the event of a Government shutdown.

Lenders and Servicers should continue normal activities which include but are not limited to,the following:

(1) Lenders should continue to submit funding fees through the VA Funding Fee Payment System;
(2) Lenders can obtain their Loan Guaranty Certificates in the WebLGY system;
(3) Lenders can continue to order and receive appraisals and issue Notices of Value;
(4) Lenders and Veterans can continue to obtain a Certificate of Eligibility online through the appropriate systems; and
(5) Servicers can continue to perform loan modifications,submit claims and receive claim payments, and convey properties to VA.

USDA

Loans with a USDA Conditional Commitment that does not contain provisional “subject to” language and with clear CAIVRS may close (provided all other standard requirements are also met).

Potential issues include:

 May not be able to issue new commitments or Loan Note Guarantees
 May not operate GUS
 Support staff may not be available to assist with loan level issues

Additional Information

IRS Form 4506­T & TaxTranscripts

Lenders will continue to require signed IRS Form4506‐T and tax transcripts.

Loans toGovernment Employees

Loans may be closed provided all documentation required for closing or loan purchase has been obtained. However, if any pending documentation cannot be obtained (including a verbal verification of employment), a loan will not be permitted to close or will not be purchased. A verbal verification of employment is an investor requirement that must be satisfied.

Social SecurityAdministration

Lenders may not be able to verify Social Security Numbers through the SSA.

FEMA Flood Insurance

It is anticipated that most functions will not be affected, however,mapping issues or amendments may be impacted.