Aside from all the other concerns like the US credit rating and long term effects on the economy, what will really happen to affect what we do every day which is list and sell houses, provide mortgages and close loans? Our mortgage pipeline is covered, but there are several areas which WOULD be affected in the event of a government shutdown.
FHA case numbers - We need one for every FHA loan before the appraisal can even be ordered. If you are in the process of writing a contract with FHA financing, please notify your lender so that they will be able to get a case number in advance of August 2. New guidelines do requre a contract to be executed prior to ordering the case number.
VA - These loans could go on IF the Veterans Administration keeps their website going. If they don't, we would not be able to order VA appraisals or VA Certificates of Eligibility.
4506 IRS Transcripts - Once only needed for quality control audits after closing, these are now a part of the underwriting on evey loan. If there is a shutdown, no IRS employees would be at work to provide these.
Rural Development (USDA) loans - Even though we have our own RD underwriter, the file still needs to go to the USDA for its final stamp of approval. That process would come grinding to a halt if the government shuts down.
FEMA - If a home is determined to be in a flood hazard zone, that loan would not be able to close because we would be unable to get flood insurance.
Loans for government employees - We would be unable to verify employment so these loans couldn't close either.
We care about your deals and are taking every precaution to stay fully operational in the event the people in Washington are unable to reach agreement.
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