What does the Federal Government Shutdown mean for The Rex Real Estate Team—and for you? The Federal Government shutdown may affect certain home loans in the short term. Note: The biggest issue will be with the ordering of Tax Transcripts (4506-T) from the IRS. With IRS offices closed, this will impact all loan types. · FHA Loans: The approval process may be slowed due to limited FHA staff to respond to questions and complete reviews. · VA Loans: With the Department of Veterans Affairs continuing to operate as normal, VA Loans will not be adversely impacted in any way. · USDA Loans: No new loans or guarantees will be made. · Internal Revenue Service: The IRS will not process any forms, including tax transcripts, which are required for loan closing. · Social Security Administration: The SSA will likely not be able to verify Social Security numbers, which is required for loan closing. · FEMA Flood Insurance: It is likely that mapping issues or amendments will be impacted. · Fannie Mae and Freddie Mac: Fannie and Freddie will not be directly affected, except to the extent that they rely on verification and other functions of HUD, the IRS, and the SSA.
Posted on: Tue, 01 Oct 2013 23:19:26 +0000
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