As we head into the second week of the Government Shutdown, I wanted to pass along some information in regards to how this may or may not affect mortgage business.
All Loans: Before a loan closes, we are required to obtain a copy of the Federal Tax Return Transcripts that are on file with the IRS. We obtain these via a service provider that obtains them directly from the IRS. The IRS is not completing these requests at this time. Northwest Mortgage Alliance has made the business decision to close loans during this time period on a case by case basis if we are missing the transcript. Not all lenders are operating under this plan, so if you have a closing coming up in the next 2 weeks, I would check on that.
We are also required to verify a customer’s Social Security number when there is a discrepancy on the credit report. We obtain this verification via a service provider that obtains them from the Social Security Administration. The Social Security Administration is not completing these requests a this time. Northwest Mortgage Alliance has made the business decision to close loans during this time period on a case by case basis if we are missing the Social Security Verification. Not all lenders are operating under this plan, so if you have a closing coming up in the next 2 weeks, I would check on that
FHA: Direct Endorsed Lenders (Northwest Mortgage Alliance is one) are able to conduct business as usual. The only issue we are experiencing at this point is when we are submit Condo packages for approval. The typical time period for a condo approval is about 4-6 weeks and FHA is currently now working on these during the shutdown.
VA: The only real issue we are seeing is in the process of obtaining a Veterans Certificate of Eligibility. We are typically able to obtain this electronically for the Veteran. In some cases, the VA has to conduct research. In these case, we are experiencing longer than expected delays. If you have a VA transaction going at this point, check with the Lender to confirm they have the certificate of eligibility.
USDA: The USDA is not issuing any commitments during the shutdown.
Flood Insurance: FEMA is not issuing Flood Insurance at this time.
– Stefanie Cummings, Mortgage Loan Originator
If you have questions, please contact us. We look