Answers to questions about how the Gov. Shutdown may impact your loan. Q: Will FHA endorse single family loans during a shutdown? A: FHA will be able to endorse single family loans during the shutdown. A limited number of FHA staff will be available to underwrite and approve new loans. Q: Will my FHA-loan still close? A: The decision to close or not will be decided by each individual lender, so you should contact your lender. Q: How will this impact the housing market? A: Because we are able to endorse loans, we don’t expect the impact on the housing market to be significant, as long as the shutdown is brief. If the shutdown lasts and our commitment authority runs out, we do expect that potential homeowners will be impacted, as well as home sellers and the entire housing market. We could also see a decline in home sales during an extended shutdown period, reversing the trend toward a strengthening market that we’ve been experiencing. Q: What about homeowners with FHA-insured mortgages facing foreclosure? A: Most loss mitigation for homeowners facing foreclosure (including FHA loan modifications, FHA-HAMP, etc.) will continue. Q: Will FHA have staff available to answer questions if there is a government shutdown? A: Limited FHA staff will be available to respond to questions, emails or other correspondence. Q: Can I get an FHA case number? A: Yes. Lenders will be able to obtain an FHA case number from the FHA Connection. Q: Will FHA insure any loans during the government shutdown? A: Yes, FHA will endorse single family loans; however, it may take a little longer to endorse. Q: Can lenders with Lender Insurance (LI) approval continue to insure loans during the government shutdown? A: Yes as long as FHA does not run out of commitment authority. If FHA runs out of commitment authority, the lenders’ LI Approval will be temporarily suspended. Q: Will the Credit Alert Interactive Voice Response System (CAIVRS) be available during a government shutdown? A: Yes. CAIVRS will be available to determine if a borrower has a delinquent federal debt. Q: Will the FHA TOTAL Scorecard be available for lenders? A: Yes. FHA TOTAL Scorecard will be available. Lenders can close loans. Q: Can a lender submit loans for approval if the lender is in pre-closing? A: No. FHA staff will not be available to underwrite and approve loans. Q: Is FHA collecting the Upfront Mortgage Insurance Premiums (UFMIP) if a lender closes any loans during the government shutdown? A: Yes. Q: Is FHA collecting the monthly Mortgage Insurance Premiums (MIP)? A: Yes. Lenders are required to submit monthly MIPs to FHA during a government shutdown. Q: Can lenders submit packages for condo approvals? A: No. FHA will not approve condo projects during a government shutdown. Q: Can lenders file a claim and convey a property if there is a government shutdown? A: Yes. Lenders can file a claim and convey a property. The properties will be assigned to an Asset Manager and listed for sale. Claims will be paid. Q: Will FHA continue to pay partial claims to facilitate workout agreements to avoid additional foreclosures and increase in homelessness in my city, municipality or town? A: Yes. Q: Who handles safety issues with a HUD Home? A: FHA has Field Service Managers (FSM) who are responsible for ensuring that properties are safely secured. If there is an issue that the FSM cannot handle, FHA will have some essential staff that will ensure that all the safety issues are addressed. Q: Will HUD Homes be listed? A: Yes. FHA’s Asset Managers (AM) will handle the sale of HUD Homes. Q: Are lenders required to file monthly default reports to FHA? A: Yes. FHA’s system for collecting the monthly default reporting will be available if there is a government shutdown. Q: Can lenders submit applications for FHA approval? A: FHA will not approve any lender applications during the government shutdown. Q: Will FHA recertify a lender’s FHA approval? A: No. FHA will not recertify any lenders during the government shutdown. Q: Will lenders be able to submit audited financial statements to the Lender Assessment Subsystem (LASS)? A: Yes. LASS will be available during a government shutdown. However, FHA will be unable to review or process any audited financial statements. Q: Will borrowers receive Mortgage Insurance Premiums (MIP) refunds? A: Yes. Borrowers will be able to obtain MIP refunds. Q: Will borrowers receive HECM payments from HUD during a government shutdown? A: Yes. Borrowers will receive HECM payments. Q: Will FHA monitor lenders during the government shutdown? A: No. FHA will not perform any post technical endorsement or Quality Assurance Reviews during a government shutdown.
Posted on: Tue, 01 Oct 2013 19:43:11 +0000
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