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Adriana Focke, Real Estate Pro in Portland, OR

Is anyone concerned about how the government shutdown is going to affect the lending and real estate industry?

Asked by Adriana Focke, Portland, OR Mon Oct 7, 2013

The IRS is closed and as far as I understand lenders need to certain form from them to close on loans.

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Not particularly. And as far as I'm concerned, the IRS can stay closed. Ain't no one going to miss them.

Seriously, for me, it makes more sense to focus on the buyers and sellers who still are out there, living their lives every single day regardless of whether they can take their kids to the Grand Canyon because the moose out front says it's closed.

Haven't seen any indications that lending's going to freeze because of the shut down; didn't happen when the government shut down in 1995, at least not to my knowledge.
0 votes Thank Flag Link Tue Oct 8, 2013
The 'shutdown' is pure fraud. Its not like they dont have money. They were going to ask permission to just print more anyway---the way our deficit government keeps screwing everything up and the way they have kept the banking system FAT while so many loans are not paying. All they have to do is simply print more.

In the mean time---they are playing a game that the multitudes of ignorant sheople dont recognize. They are dilberatley cutting high profile services such as war memorials, certain jobs that cause controversy etc so we will be mad at the horrible Republicans who have caused us this pain. Its smoke and mirrors folks. Notice now everyones attention is drawn to it and we are ingoring petty things like THE ILLEGAL WAR (oil interests) and $10,000 toilet lids. Obama is a horrible piece of work and the worst thing to ever happen to this country. The Republicans are sitting back and taking all this instead of really coming out swinging.

This will have no affect on our industry...if any, just a glitch because it will straighten out. SOme closings may be delayed. No one will care enough to do anything about it though. We are sheep and deserve what we get. STOP PAYING TAXES and clean the current administartion out of the White House. Are you all brave enough to do that? No...Why? Because of our very own GESTAPO---the IRS. How sad we are afraid of our government of, by and for the people.
0 votes Thank Flag Link Tue Oct 8, 2013
The shutdown has shown how much the federal government is too involved in the real estate market and needs to pull operations back to within Constitutional limits.
0 votes Thank Flag Link Tue Oct 8, 2013
The only loans that are affected at the moment are those looking for USDA Rural Housing. That is at a hard stop. All other functions: FHA case assignment, CAIVRS, LDP/GSA, Tax Transcripts, SSA Authorizations --- most of those are either still functioning (at slower pace) OR most everyone (lending) has waived certain requirements for processing although still requiring forms to be signed and full tax returns on each file, self employed or not. As soon as the gov't is back in full swing, all of these waived requirements will be back in full force. Hope this helps! Kim Lawson, Ohio Licensed Mortgage Loan Originator. Contact and licensing information can be found on my profile.
0 votes Thank Flag Link Tue Oct 8, 2013
I have two major concerns: One that it will slow down the entire process and frustrate everyone involved, and two that buyers aren't aware of exactly how it affects them and so will hold off their home searches entirely.
0 votes Thank Flag Link Tue Oct 8, 2013
So far the shutdown does not introduce any credit risk for potential home shoppers. In fact, that quantitative easing may stay in place a while longer is a benefit, so they are reacting positively to the government shutdown.

Best of Luck,

Maria Cipollone
0 votes Thank Flag Link Tue Oct 8, 2013
Most local lenders such as BB&T, use a third party provider for the IRS confirmation and the specail form.
A statistical slow down is enevitable, but will be more influenced by the immenient rush of cash out of the consumers pockets into the hands of banks, home insurance companies, flood insurance companies, health insurance companies, taxes and living expenses. There are REAL storm clouds on the horizon that will dwarf the childishness of the DC dolts.
Do not be deceived for a single second thinking the flood insurance issue is mainly a coastal problem.
It hard for me to wrap my brain around a shut down where everyone still gets paid. That sounds like VACATION to me.
0 votes Thank Flag Link Tue Oct 8, 2013
Very much so, and i notice it is affecting buyers decision whether to even buy and a sellers decision whether to sell or stay put
0 votes Thank Flag Link Tue Oct 8, 2013
It appears that the lenders are able to get around it for now but the longer it drags on the bigger the impact it will have in a more generalized manner.
0 votes Thank Flag Link Tue Oct 8, 2013
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