The South Coast Real Estate Round-Up

So, government shutdown is upon us. If you're in the middle of financing a home will it affect you? And if so, how?

• FHA will be able to endorse single family loans during the shutdown, however, only a limited number of FHA staff will be available to underwrite and approve new loans so the process may take longer.
• If a lender submits loans for approval if the lender is in pre-closing, FHA staff will not be available to underwrite and approve loans.

GNMA, FNMA, FHLMC:  No significant affect

VA:

The Department of Veterans Affairs (VA) will continue to operate if there is a government shutdown which means lenders will be able to continue originating VA-guaranteed loans. Both lenders and borrowers will be able to obtain their Certificate of Eligibility online, and they will still be able to submit applications and follow up on COEs that require more research with the Atlanta Eligibility Center. Lenders can and should continue to remit funding fees through the Funding Fee Payment System.

• USDA has not issued guidelines yet, but indications are that they may be similar to those in the 2011 contingency plans issued by OMB. Under this plan Rural Development would cease all but essential functions and no new loans or guarantees will be made.

• FEMA is likely to provide information through a bulletin in the case of a government shutdown. While many functions will be unaffected, because of their use of contractors and public/private partnerships, and it is likely that mapping issues or amendments will be impacted