WHAT A GOVERNMENT SHUTDOWN MEANS TO THE MORTGAGE INDUSTRY

  1. Flood Insurance
    1. No new policies and/or renewals will be processed.   Therefore, if a loan requiring flood insurance does not have the proper insurance in place, it cannot close under any circumstance.
      1. If the policy was paid before the shut down or is not yet due for renewal, there is no impact. The shut down only impacts the issuance of new and/or renewal policies.
  • IRS Transcripts
    • Most likely unavailable or significantly delayed.
  • USDA
    • No new commitments and/or loan guarantees can be issued.     
    • If a commitment has already been issued, it will be business as usual. If a commitment has not been issued, the loan cannot close until commitment authority is restored.
    •  
  • FNMA/FHLMC
    • Completely unaffected by the shutdown.
  • FHA, VA & GNMA
    • Most staff will be unavailable – however – it should be business as usual.
      • Loans will not be insured/guaranteed, but that will not impact production.
      • Any properties that requires government staff intervention (example condo approvals) will be on hold as staff is unavailable.

If you have any questions regarding your mortgage financing, where it stands and how we can assist with getting you to the closing table; call Zach Larichiuta today!

Zach and the Lucy Lending Team

843-469-9010

zach@lucylendingteam.com

www.charlestonmortgagelender.com

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