Today on October 1, 2013 marked the Second Government Shutdown in the
History of the United States in 17 years. Congress was not able to agree
on a budget. Resulting in the shut down of all non-essential services
by the U.S. Federal Government. You should know that "Obamacare" funding
and delays are not the only matter of concern or issues within the
agenda of our government in this Political dispute. The Government
Shutdown is
on, but how long will it last, and what is being affected by it?
Q: How will the
government shutdown affect FHA/VA/USDA appraisals?
A: If you sell a home and write a contract for a government
buyer (FHA/VA/USDA), we should be able to order your case numbers and
appraisals so this should not affect your transaction.
Q: Will the
government shutdown affect the processing or closing of FHA-insured loans?
A: FHA will have limited staff during a shutdown and the
processing or closing FHA –insured loans may be delayed. All FHA
underwriting and processing requirements remain in force during the government
shutdown and no loan may proceed that cannot fulfill those requirements.
Q: Will Lenders
have access to FHA Connection?
A: Lenders will be able to access FHA Connection, however
FHA Connection interfaces to other systems may not be available, or if
available these other systems may not be fully supported so FHA Connection
processes may not be fully functional. At this time we do not have complete
information on the potential impact on some FHA Connection functionality. Below
questions and answers reflect our best effort at defining what will be
available.
Q: Can a lender
obtain a new FHA case number?
A: Yes. Lenders will be able to obtain a FHA case number
from the FHA Connection.
Please note that all FHA underwriting and processing
requirements would remain in force on loans originated during the government
shutdown regardless of system limitations during the shutdown period.
Q: Will FHA TOTAL
Scorecard be available for lenders? Total Scorecard is the Automated
Underwriting system
A: Yes. FHA TOTAL Scorecard will be available. Lenders
can close loans. As noted, all FHA underwriting and processing requirements do
remain in force on loans originated during the government shutdown.
Q: Will tax
transcripts be affected?
A: All lenders require tax transcripts be processed by the
IRS and are required prior to closing all loans. So, your transaction
could be held up waiting for the IRS to process the transcripts once they are
back up and running
Q: What has Hallmark
done to prepare tax transcripts?
A: Hallmark has ordered transcripts for all loans in process
that have a valid signed 4506T form signed in the file.
Q: Will Credit
Alert Interactive Voice Response System (CAIVRS) be available?
A: Yes. CAIVRS will be available to determine if a
borrower has a delinquent federal debt.
Q: Will VA and
conventional financing be impacted by the shutdown?
A: At this time
the only impact on both VA and conventional financing is the inability to
obtain tax
transcripts.
*USDA UPDATES
We want to make this
clear, the government shutdown and USDA being out of money are two totally
different issues! The fact that USDA is out of money happens each year and
lenders are normally able to fund loans as long as long as they have a
conditions commitment issued by USDA. Loans in process will
be submitted to USDA as usual, but the review of the files will be backed up
depending on when the USDA employees are back to work. Loans that have already
been submitted and approved by USDA, will be able to be closed as normal. Loans
that have already been submitted to USDA, but have not yet been approved, will
not be able to. We will be in contact with the various government agencies and will
update all parties on any changes.
