BELOW IS MORTGAGE INFO ON GOVT SHUTDOWN: The house and senate were unable to resolve the differences between their approaches to a Continuing Resolution last night, resulting in a government shutdown beginning today, October 1, 2013. There will be a furlough of certain federal employees and a significant curtailment of certain agency operations. The latest information available: I. HUD, FHA, and Ginnie Mae The Department of Housing and Urban Development’s operations, specifically the Federal Housing Administration (FHA), should not be significantly impacted as long as the shutdown is brief. In a document issued September 27, 2013 HUD indicated: · FHA will be able to endorse single family loans during the shutdown, however, only a limited number of FHA staff will be available to underwrite and approve new loans so the process may take longer. · Most loss mitigation for homeowners facing foreclosure (including FHA loan modifications, FHA-HAMP, etc.) will continue. · Limited FHA staff will be available to respond to questions, emails or other correspondence. · Lenders will be able to obtain an FHA case number from the FHA Connection. · If FHA runs out of commitment authority during a shutdown, then lenders’ Lender Insurance (LI) approval will be temporarily suspended. · CAIVRS will be available to determine if a borrower has a delinquent federal debt. · FHA Total Scorecard will be available. · If a lender submits loans for approval if the lender is in pre-closing, FHA staff will not be available to underwrite and approve loans. · FHA will collect the Upfront Mortgage Insurance Premiums (UFMIPs) during a shutdown · Lenders are required to submit monthly MIPs to FHA · Lenders can file a claim and convey a property; and claims will be paid. · FHA will not recertify any lenders during the shutdown. · FHA will not approve any lender applications during the shutdown. · FHA will not perform any post technical endorsement or Quality Assurance Reviews · GNMA will retain essential functions II. VA The Department of Veterans Affairs (VA) will continue to operate if there is a government shutdown, which means lenders will be able to continue originating VA-guaranteed loans. Both lenders and borrowers will be able to obtain their Certificate of Eligibility online (webLGY), and they will still be able to submit applications and follow up on COEs that require more research with the Atlanta Eligibility Center. Lenders can and should continue to remit funding fees through the Funding Fee Payment System (FFPS). In addition, servicers will still be able to perform Loss Mitigation on VA-guaranteed loans and VALERI will still be active. Servicers should continue to report all required actions in that system. Lastly, servicers will still be able to submit claims for guarantee, be paid, and convey properties to VA. III. Rural Housing USDA has not issued guidelines yet, but indications are that they may be similar to those in the 2011 contingency plans issued by OMB. Under this plan Rural Development would cease all but essential functions and no new loans or guarantees will be made. IV. Internal Revenue Service (IRS) The Internal Revenue Service (IRS) has indicated that they will not process any forms, including issue tax return transcripts (Form 4506 T), should a government shutdown occur. Without tax transcripts, loan processing may be delayed, depending on individual housing agency requirements and aggregator guidelines. V. Social Security Administration (SSA) For verification of borrowers’ social security numbers, lenders rely on either third party vendors or the Social Security Administration (SSA). In previous shutdowns, SSA has only retained employees that deal directly with the processing of new claims and benefits; therefore we may not be able to continue to verify social security numbers through SSA. We will be unable to close loans without tax transcripts or SSA verifications for the time being. This is a highly fluid situation; we will keep you updated as more information becomes available.
Posted on: Tue, 01 Oct 2013 20:00:45 +0000
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