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What does the potential government shutdown mean for clients needing loans?

By
Real Estate Agent with Coldwell Banker Residential Brokerage

This is the million dollar question looming as we are just a little over 24 hours from that happening. Well, Kelli Harris from Coldwell Banker Home Loan sent a blast out to all the agents in my office, and did a great job in telling us what expectations to set with our clients. Here is what she had to say.

Begin Quoted e-mail text:

Hi Agents.

If the government does shut down tomorrow, it will most definitely have an impact on the mortgage industry and could delay pending closings as a result.

Here are the impacted areas that have been identified thus far:

  • FHA Case numbers ordered
  • CAIVERS checked
  • 4506 processed
  • LDP/GSA checked
  • Certificate of Eligibility ordered (VA loans)
  • Indebtness letters
While most of these tasks are completed behind the scenes, they are vital to a loan being approved and cleared to close. 

Our Processing Center is diligently working on obtaining these docs for loans that we currently have in process.  For any new loans, once the shut-down is on, we will not be able to get these docs until the government is open again.  The good news is that on loans not impacted by the above, business will be as usual and we will be able to FUND loans for closings.

I want to set proper expectations with you so together we can set proper expectations with our clients as again, this will be an Industry-wide issue.  

Posted by

John B. McKernan II - REALTOR®
Coldwell Banker Residential Brokerage
(d) 404.822.5235
(e) John.McKernan@coldwellbankeratlanta.com
(i) ColdwellBankerAtlanta.com/John.McKernan

Nancy Larson
I am a licensed referral agent in NJ - Hutchinson Island, FL

It's a shame. It's not the first time this has happened and I am sure it won't be the last....Good luck.

Apr 07, 2011 03:02 PM