Austin Buyer…, Home Buyer in Austin, TX

Lenders and brokers, do you think the government shutdown will have an effect on home loans closing?

Asked by Austin BuyerNow, Austin, TX Tue Oct 1, 2013

At first I thought it would spell big trouble, but then I read that the FHA only approves about 15% of conforming loans while they delegate the approval of the rest to the lenders.

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12
Brian Nguyen, Mortgage Broker Or Lender, Mission Viejo, CA
Fri Feb 14, 2014
When it comes to loans, they will be affected differently. Here is what is occurring: - USDA loans will be on hold as the Department of Agriculture is closed. - VA will remain open. - We should also see delays in FHA processing. - Fully approved FHA and VA loans will be able to close, but there will be delays in insuring - FHA case numbers will be obtainable if processed automatically. Manual processes will not. These are just some things to keep in mind during this time. Brian Nguyen Sr. Mortgage Banker NMLS # 659743 Phone: 949.667.2887 brian.nguyen@nafinc.com
0 votes
Eric Hegwer, Agent, Austin, TX
Wed Oct 2, 2013
The shutdown won't just affect buyers, but also sellers!

I've written about the entire process, including all the different government agencies (FHA, VA, USDA, SSI, & IRS)

http://www.ericestate.com/4-ways-the-government-shutdown-wil…
0 votes
Gregorio Den…, , San Diego, CA
Wed Oct 2, 2013
To answer the question, the government shutdown affects FHA loans not in funding but in the initial stages of acquiring an FHA case number, which will be delayed, ordering 4506T transcripts, which are not currently being done and getting social security administration clearances back. Obtaining case numbers will be a big setback for getting new escrows started and appraisals ordered, you cannot order a FHA appraisal without a case number.
0 votes
Gregorio Den…, , San Diego, CA
Wed Oct 2, 2013
"And FHA doesn't have anything to do with 'conforming' loans. Conforming = Conventional loans. "
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That's not actually true. FHA loans are in fact conforming by definition because they do conform to Fannie Mae guidelines, this is why DU is run on FHA mortgages. Conforming has nothing to do with conventionality, these are 2 separate concepts.

FHA loans are non-conventional, conforming loans as opposed to conventional conforming loans.
0 votes
Tommy Burris, Mortgage Broker Or Lender, Baton Rouge, LA
Tue Oct 1, 2013
FHA doesn't approve ANY loans. Lenders do.
And FHA doesn't have anything to do with 'conforming' loans. Conforming = Conventional loans.

For FHA loans.... the only things down are Social Security verifications and the lenders being able to order tax transcripts.
We can do everything else while we wait for the guvt to get it together.

For the Conventional/conforming loans.... same deal.... SS & IRS.
All else can be worked on while we wait for that stuff.


Tom Burris
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0 votes
Steven Nusin…, Agent, Austin, TX
Tue Oct 1, 2013
Government products could have some delays, and the USDA product is shut down. However, you mentioned a jumbo loan in a previous post, so it should be business as usual for your financing.

Please feel free to contact me anytime.

Steve Nusinow
(512)922-7588
0 votes
Dwayne Grego…, Agent, Austin, TX
Tue Oct 1, 2013
At this very minute it will some affect depending on the type of loan. FHA can still be processed but they have minimal staffing however as someone else here pointed out earlier USDA has been shutdown. VA loan dept is still able to process home loans with minimal staffing. On the business side of things SBA loans for the year had to be submitted yesterday. If it is done today I will have to check on that. Anyone that tells you interest rates are at their lowest ever is hogwash. Not in comparison to last year or the year before that. If you would like to know more I would be happy to assist.
0 votes
Josh Kohl, , Austin, TX
Tue Oct 1, 2013
The USDA Mortgage Arm has shut it down until those in Congress can figure out how to play nice.
0 votes
JOSEPH E JAR…, Agent, Austin, TX
Tue Oct 1, 2013
More importantly, since the Fed has not started to back off on their Quantitative Easement interest rate program, rates are back down to one of the lowest points ever. If you are in the market to buy a home, contact me ASAP and I will connect you with an excellent lender. Rates went up for the past couple of months but are now back down to near record levels. Now is one of the best times in history regarding interest rates, home prices, etc.

If you're not already working with an agent, feel free to reach out to me and I will explain what I do for my clients. I am consistently in the top 100 agents in the greater Austin area, charge nothing for my services, and have a great team of lenders, inspectors, title people, etc. to assist us throughout the process. I am a Residential Specialist and also specialize in Negotiations. Thanks, Joe

Joe Jarusinsky, Realtor/Master Instructor, Keller Williams Realty, Austin's #1 Real Estate Company, Call 512-261-4415
0 votes
Gregg Klar, Agent, Austin, TX
Tue Oct 1, 2013
The length of the shutdown will be the key factor in determining how this will impact the mortgage and real estate industry. If it is only a 4 or 5 day shutdown then the effect will be a minor inconvenience. If it stretches out to two or three weeks then the impact will broaden.



The primary adverse effect on the mortgage and real estate industry at this point will be the inability of any lender to obtain tax transcripts from the IRS and to verify a borrower’s social security numbers during the government shutdown. Loans without tax transcripts and verified Social Security numbers will not be able to close.

If the shutdown is brief then this should have little effect on HUD as they will continue to endorse single family FHA loans. And for the time being, it should be business as usual with the VA. At this point, USDA loans are a question mark. United Lending is reaching out to several field offices to see how they plan to respond to this. We have “heard” they may allow loans with a “clear to close” issued from the USDA to close, but we have not confirmed this. Please stay tuned on this.
0 votes
Stuart McWil…, Agent, Lakeway, TX
Tue Oct 1, 2013
IRS division that does tax transcripts on conventional loans could see some delays. Hopefully the government doesn't stay shut down and any affect on the housing market is minimal!
0 votes
JOSEPH E JAR…, Agent, Austin, TX
Tue Oct 1, 2013
We have been through this before, and each time it really has had no effect on interest rates. Interest rates are tied to many, many different factors, but a temporary government shutdown, in my opinion, is not going to make any difference at all. If anything, it would drive stocks down temporarily, driving bonds up temporarily, which would put downward pressure on Interest rates.

Joe Jarusinsky, Realtor/Master Instructor, Keller Williams Realty, Austin's #1 Real Estate Company, Call 512-261-4415
0 votes
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