News

Real Estate Ramifications of Partial Shutdown of Federal Government

Currently, there are two areas of concern for your business: 1) delays in processing of FHA-backed mortgages, and 2) slower response times by IRS offices for tax information needed for real estate transactions. (The availability of flood insurance under the National Flood Insurance Program was set to expire on midnight of December 21st but was extended to May 31st.)

FHA programs
FHA has furloughed non-essential employees. Delays are possible in loan processing and approval. Mortgages backed by secondary mortgage market companies Fannie Mae and Freddie Mac are not affected, nor are mortgages backed by the U.S. Department of Veterans Affairs.

Tax information
To the extent taxpayer information from the IRS is needed, transactions can face delays as IRS offices, subject to furloughs of non-essential employees, take longer to reply to requests.