Implications of Government Shutdown

By
Mortgage and Lending with Cherry Creek Mortgage

 

While we are still hopeful that a shutdown will be avoided (or another continuing resolution passed), it is unlikely that there will be any decision until the last minute. We understand the President is meeting with Speaker Boehner and Senate Majority Leader Reid at 1:00 p.m. EDT today.

Below is the latest information we have on the implications at the housing agencies. However, no final decisions have apparently been made. We do expect FHA & Ginnie Mae will publish FAQs if the shutdown does occur.

FHA

We have been advised that FHA Connection will be operational except that you will not be able to perform CAIVRS' checks or obtain insurance endorsements (including lender insurance). We will also be unable to pay upfront premiums. However, we have been told that we can still obtain case numbers.

We recommend that you run CAIVRS' checks immediately on all loans that you want to close in the next week or two in case the shutdown does occur. A CAIVRS' problem is likely the most immediate impediment to obtaining insurance once the loan the program is reinstated.

USDA

USDA has advised us that lenders will be able to close loans for which they had already received a commitment. However, we will not be able to get the Loan Note Guarantees for them until the shutdown is over.

During the shutdown, USDA will not issue any new commitments or Loan Note Guarantees for closed loans. Unlike FHA, USDA will not operate GUS, its automated system, during any shutdown.

VA

VA has indicated that they will continue business as usual during the shutdown. We just confirmed that with VA. VA said that you can still originate loans, submit funding fees, transmit servicing information to VALERI, assign appraisals, etc.

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Rainer
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Sarasota & Manatee Counties FL
SaraMana Properties - QuickFreeMLS.com - Bradenton, FL
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I hope that the whole stinking edifice of criminality and corruption comes crashing down on itself, so that "We The People" awaken from our slumber and hear the call of Liberty . . .

Don't hold your breath . . .

Jul 29, 2011 08:29 AM #1
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