â€œLenders processing loans that need tax transcripts, social security number verification, orÂ FHAÂ [Federal Housing Administration] loans face longer delays and reduced functionality fromÂ HUD,Â IRS, and the Social Security Administration,â€ Stevens said.
â€œDifferent loan programs have different requirements, and these disruptions impact lenders in different ways, leading to confusion and fear among borrowers about whether they will be able to close on a home purchase or refinance,â€ he added.
Multifamily lenders can also expect to feel some of the fallout, as rental housing properties awaitingÂ FHAfinancing will not be able to move forward, he said.
Whatâ€™s more, the furloughs also threaten time-sensitive mortgage transaction deals by interfering with borrower lock agreements and causing interest rate disparities from the time the loan is closed to the time it is securitized.
â€œFor these reasons there must be a resolution so that borrowers and lenders are able to return to business as usual,â€ Stevens concluded.