Today's Buzzzzzz....The Government Shutdown and its effects....

It is official but the question is how long will it last? Previous shutdowns have lasted anywhere from 1 to 3 days on average, with the longest shutdown taking place back in 1995 for 21 days. And the more important question on your minds, is, how will this affect our business? Do your best to remain optimistic! In the meantime, the processing and underwriting of residential mortgage loans will be impacted in many ways:

Please know that we are doing everything in our power to ensure closings are not affected.

1) IRS tax transcripts must be ordered from the IRS for ALL LOANS.
Usually takes a day or two to get these.
Expect lengthy delays here during the shutdown.

2) Social Security number verification must be ordered from the Social Security Administration for ALL LOANS.
Usually takes a day or two to get these.
Expect lengthy delays here during the shutdown

3) FHA and VA Case numbers must be ordered for these types of loans.
As of today, the online portals were working fine.
We are hearing that if the shutdown goes more than a week that this service could be affected.

4) VA appraisal orders
This is an automated system that should not be affected. Could be if the shutdown goes on for any length of time.

5) VA Certificates of Eligibility
Should not be effected as they are ordered through online portal. Could be if the shutdown goes for any length of time.
If unable to pull through the automated system, expect delays as has to be done manually and agency will be closed.

6) USDA
This is probably the BIGGIE! – The loan file is underwritten completely by the lender and sent to the USDA for a second underwrite and final sign approval. Due to the shutdown, RD is not processing any loan reviews and commitments. Expect delays until RD is back up and running and once they do there will be a back log in processing.

7) Verifications of employment could be delayed for ALL LOANS if your client is a government employee.
Expect delays here during the shutdown as well.

8) Lock Agreements
For borrowers that are currently locked (interest rates) and the closing is delayed, due to any item above, this could become a cost for your client.

9) New purchase contracts
How long do you write an offer? Just something to think about...



A “short” shutdown will create some inconveniences and small delays in the processing, underwriting and closing of loans. However, a longer shutdown will certainly have a serious impact on the process so ALL transactions should be discussed on an individual case basis. Contact your clients and make sure the lender they are working with is keeping you informed of all above.

Is this a reason to close up shop, ABSOLUTELY NOT! Loans will still get done, buyers will still buy real estate and sellers will still sell. This is merely a speed bump on the road to success. Just be mindful of the possible challenges and go out there and get more than your fair share!

Have an amazing rest of the day.

Respectfully,
Grant Hopkins
Sales Manager
Movement Mortgage, LLC
10100 West Charleston Blvd, Suite 160
Las Vegas, NV 89135Main: (702)472-9830