Thursday, October 3, 2013

Kentucky FHA, VA, Rural Housing Program, Fannie Mae delays for Government Shutdown

Now that the U.S. Government has reached day three of the shutdown; be prepared to see a ripple effect in the real estate and lending industry.  As a real estate and lending professional, it's important to know how the shutdown will impact your business and even more important so you can keep your customers informed. 
The American Land Title Association (ALTA) released an article detailing what the possible impacts of the shutdown might be.  A copy of this article and the HUD contingency plan can be viewed by selecting the icons below.  Click HERE for a link to all federal agency/program contingency plans and click HERE for the link to VA contingency plan.

HERE'S A REVIEW OF DELAYS AND DISRUPTIONS:

·         VA Loan Guaranty Program


·         Internal Revenue Service
Due to the current lapse in appropriations, IRS operations are limited.  National Mortgage News reported that the IRS is not processing lender requests to verify borrower information due to the government shutdown. This could result in delays in closings, as many lending programs require underwriters to file IRS form 4506-T to verify the mortgage applicant's income and Social Security number.


We hope a resolution is reached soon. Until then, be prepared for delays in the home buying process.
As always, please let us know how we can be of service to you and your customers.  We look forward to working with you on your next transaction!