With our government in shut-down, I thought it was important to share what the anticipated impacts are on the mortgage side.
Since 1976 there have been eighteen shut-downs, and I’m sure this one will not be the last. The good news is that they on average last four days, with the longest at 21 days.
The job report that was slated to be released on Friday is unlikely to be issued on time. As a result, heavier weight will be put on tomorrow’s National Employment Report put out monthly by Automatic Data Processing (ADP). Interest rates are likely to move, so we are taking a conservative approach, and recommending all clients lock.
Status by Loan Program/Type
VA: Business as usual; however, if we have to contact an individual they may not be available.
ONAP: Although no official announcement has been received, we are aware that they are out of funds and no new additional firm commitments will be issued. If we have a firm commitment, no change in loan amount, expired what?, we can move forward with closing that loan.
USDA: All operations are shutdown at this time. If you have a Conditional Commitment, already issued, we may proceed with closing as long as no change to loan amount/terms.
FHA : No formal announcement from HUD; however, I believe this will be similar to VA as long as we can operate within their systems, we can proceed business as usual.
Fannie Mae: No formal announcement; assuming business as usual.
4506-T/Tax Transcripts: The system is rejecting any new orders for tax transcripts.
SSA-89: No information at this time; I anticipate we will not be able to obtain validation.
Have a Mortgageific day!