_______Effects of Government Shutdown on Real Estate________ ***** NO EFFECT **** 1) Federal Reserve Banks no impact on ability to send/receive wires 2) Fannie Mae & Freddie Mac loan purchasing/servicing functions all remain intact 3) Ginnie Mae still issuing securities 4) VAs function as normal in the event of shutdown 5) FHA - Lenders will still be able to order case numbers - Staff reduced slightly. - Transfers and cancellations will not be processed. - Lenders should still remit MIP on closed loans. ***** MINOR EFFECT **** 1) Social Security Administration - staff will be reduced significantly - verify identity/social security numbers will be discontinued - utilized on a very small percentage of loans where the identity of the borrower cannot otherwise be confirmed. ***** MAJOR EFFECT **** 1) USDA Loans – almost all employees are non-essential (furloughed) - Possible that no new USDA loans can be originated - Current loans in the pipeline could be impacted.
Posted on: Wed, 02 Oct 2013 01:27:23 +0000