Shutdown Takeaway: the Federal Government and Real Estate


What does the Federal Government Shutdown mean for you and your real estate transaction or home mortgage loan? Just how interconnected are the activities of the federal government and real estate?

The Federal Government shutdown may affect certain home loans in the short term.

  • FHA Loans: The approval process may be slowed due to limited FHA staff to respond to questions and complete reviews.
  • VA Loans: With the Department of Veterans Affairs continuing to operate as normal, VA Loans will not be adversely impacted in any way.
  • USDA Loans: No new loans or guarantees will be made.
  • Internal Revenue Service: The IRS will not process any forms, including tax transcripts, which are required for loan closing.
  • Social Security Administration: The SSA will likely not be able to verify Social Security numbers, which is required for loan closing.
  • FEMA Flood Insurance: It is likely that mapping issues or amendments will be impacted.
  • Fannie Mae and Freddie Mac: Fannie and Freddie will not be directly affected, except to the extent that they rely on verification and other functions of HUD, the IRS, and the SSA.

If the government shutdown lasts only for a few days, the above scenarios may have little to no impact on loan approvals. A shutdown of longer than one week, however, will have a more significant impact on how a lender conducts business. Ask you loan officer to keep you informed as more information becomes available.

This is a guest post by Amy Sharpless of Academy Mortgage in Park City.

Don’t hesitate to contact me with any questions or concerns.

Amy Sharpless, Academy Mortgage, Senior Loan Officer
Mobile 435-640-1878 Address 1526 Ute Blvd #207 Park City UT 84098
NMLS #294849 UT State Lic# 5460939 Corp NMLS #3113 Corp. UT State Lic#5491140-MLCO