What Effect Will the Government Shutdown Have on New Orleans Real Estate?

Government Shutdown and New Orleans Mortgages

Government Shutdown and New Orleans Mortgages

Jeff Johnson at NOLA Lending has provided the following outline of the effects of the government shutdown and New Orleans mortgages. If you are buying or selling a New Orleans home that involves a new mortgage, here’s what you need to know:

HUD / FHA Loans

The FHA should not be significantly impacted, providing the shutdown is brief. HUD has provided the following information that applies to our daily operations:

  • FHA will be able to endorse single family loans, however, only a limited number of FHA staff will be available, so the process may take longer.
  • Limited FHA staff will be available to respond to questions, emails or other correspondence.
  • You will still be able to obtain a FHA case number from FHA Connection.
  • CAIVRS and FHA Total Scorecard will still be available.
  • Should FHA run out of commitment authority during a shutdown, then all lenders’ Lender Insurance approval will be temporarily suspended.

VA Loans

Continue originating VA loans; the Department of Veterans Affairs (VA) will continue to operate.

  • Obtaining the veteran’s Certificate of Eligibility online through the webLGY will still be available.
  • Submitting applications for new COEs and follow up on COEs requiring more research with the Atlanta Eligibility Center will still be available.
  • Ordering appraisals the Veterans Information Portal will still be available.

Rural Housing / USDA Loans

Due to the lapse in federal government funding the offices are closed.  They will reopen once Congress restores funding.

Internal Revenue Service (IRS)

The IRS has indicated that they will not process any forms, including the issuance of tax return transcripts (Form 4506T) during a government shutdown, which will delay loan processing.

Social Security Administration (SSA)

In previous shutdowns, the SSA has only retained employees that deal directly with the processing of new claims and benefits. The likelihood is we would not be able to continue to verify SSNs through the SSA, which will delay loan processing.

If you have additional questions, please call us at (504) 327-5303.

Comments or Questions? Go!