Real Estate and the Government Shutdown For the first time in the last five year pendulum swing of economic gains and losses, the DMV is feeling the lingering effects of the recession now that the government has shut down. The fortunate real estate bubble that has existed in Metropolitan Washington, DC and its surrounding areas has held strong throughout these turbulent times but now more than ever we feel the changes. Commercial and residential, public and private sectors have always remained opened and ready to serve. Cranes fill the sky line inside of the beltway as new buildings are erected at a steady pace. That was until September 2013 came along and the surge of new real estate development deals began to slow down as the rest of the country started to see increases. Now that we have entered the first week of the federal shutdown, we find the IRS closed as they have suspended the processing of all forms, requests, and tax return transcripts. Loans with the FHA and VA will continue paying claims and collecting premiums but are expected to see delays. Although the HUD Contingency Plan states will continue to endorse new Single Family Mortgage Program loan, the Multi-family program will not make new commitments. Lenders are expected to have delays within the Loan Guaranty program as the shutdown looms on. On the brighter side, Fannie Mae and Freddie Mac have predicted normal operations with their regulators, the Federal Housing Finance Agency, due to their independence from appropriated funds. Unlike FEMA, who has assured President Obama that flood insurance will not be impacted and no changes will be made to premiums during the shot down. It should be noted that those with policies with the National Flood Insurance Program should review the new changes that were took effect on October 1st of this year. As we enter the second week of the federal government shut down we can expect that the across the country real estate investment will continue to see peaks and valleys as we ride this unpredictable wave. We can rest assured that our country will recover and our economy will thrive again with the real estate industry at the forefront. With each passing day the Obama Administration along with Congress work towards reinstating the government services that are a crucial part of the real estate industry nationally and within the DMV. Staff Writer Aisha Hassan
Posted on: Mon, 07 Oct 2013 19:56:48 +0000
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