What Does the Government Shutdown Mean for Residential Real Estate?

NAR

The U.S. Government shutdown – how will it affect residential real estate? The National Association of Realtors (NAR) is reporting daily updates on this topic. As of October 1, 2013, here is what NAR is saying:

WIth the failure of the Continuing Resolution to provide funding for most government operations, many government programs are now shut down. Agencies are required to have contingency plans in place to keep running and most that affect residential real estate are continuing to operate.

Internal Revenue Service (IRS) -The IRS has suspended processing request for tax return transcripts. (Even though FHA and VA loans do not required these transcripts, they are required by many lenders.) For loans requiring this information, Fannie Mae and Freddie Mac have adopted relaxed provisions to allow closings.

Social Security Administration (SSA) – The SSC is closed and suspended most customer service functions.

Federal Housing Administration (FHA) – The FHA will endorse new loans for single-family loans (but not multi-family loans). There will be delays with FHA processing.

VA Loan Guaranty Program – Lenders will process and guaranty loans. There will be delays in processing.

Flood Insurance – FEMA will not be impacted by the shutdown.

Rural Housing Programs – Field staff who issue commitments and guarantees for the rural housing program are impacted by the shutdown as they are not considered essential personnel. Lenders will not receive approvals during the shutdown.

Fannie Mae and Freddie Mac – These organizations will not be affected by the shutdown.

Treasury Р Making Home Affordable (HAMP and HAFA) will not be affected by the shutdown.

Read more about each agency as well as updates from NAR here.