Below is some information on how the government shutdown is impacting what we do. Most importantly is the fact that on all conventional, VA, FHA, and USDA – guidelines require lenders to pull IRS tax transcripts to ensure what an applicant is reporting for income matches that of what they report to the IRS. The IRS is currently not processing these requests. If you have deals in process either as the listing or buyers agent, check with your lenders to ensure these were done prior to the shutdown. If they were not please be aware they will not be processed until Washington comes to terms and back to work. Expect delays once the IRS does get back online.
Some lenders are waiving the requirement for the tax transcripts on a case by case basis
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Government Shut Down
Impact
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- 4506-T Tax Transcripts
- VOE’s (Verification of Employment)
- USDA Loans
- FHA & VA Loans
The US Government has shut down due to the expiration of the nation’s spending authority. Due to this shutdown, many government agencies and services are closed or suspended, including the IRS and Social Security Administration.
4506-T Tax Transcripts
Policy to requires tax transcripts on all loan files, with the exception of VA IRRRL’s.(streamlines) As of right now, this policy will not change. The Credit Policy & Underwriting teams will continue to assess the situation. If any updates to policy become necessary, a separate announcement will be released advising of the change.
Transcript vendors, can continue accepting and processing verification requests, but per the IRS’ and SSA's advice, they WILL NOT send the orders until the appropriate government agency reopens. Once a budget has been approved, and the agencies are reopened to normal business hours, the orders will be sent to the IRS or SSA for completion.
VOE's
Verifications of employment for Federal Government employees with loans in process will still be required in order to close the loan – these will be delayed
USDA Loans
During the government shutdown, the USDA’s web services will not be available. New Penn Financial will require a loan note guaranty be issued prior to closing. Contingent conditional commitments will not be accepted at this time. This can add to and already lengthy USDA backlog.
FHA & VA Loans
The FHA and VA offices will be operating under a limited staff. Expanded turn times should be anticipated when contacting these agencies.
 
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