How the Government Shutdown May Affect You - Linus Schemer, 1st Advantage Mortgage
October 2, 2013
The United States Government has shut down as of October 1, as Congress could not agree on a budget. As a result, hundreds of thousands of government employees have been furloughed. Below is a summary of how the shutdown may affect you and your mortgage purchase or refinance.
• Rural Housing will not issue Loan Note Guarantees during the shutdown nor will they issue new commitments.
• Rural Housing will not operate GUS, its automated underwriting system, during any shutdown.
• Due to the inability to obtain Loan Note Guarantees, 1st Advantage will be unable to close an Rural Housing loan that does not already have a Loan Note Guarantee in the file.
• We advise against taking further Rural Housing applications on purchases until the government shutdown situation is resolved.
• The IRS 4506T requests for tax transcripts will not be fulfilled. Processing will continue to send the request to our transcript provider but the request will not be fulfilled until the government shutdown situation is resolved.
• Most of our investors require that tax transcripts are contained in the loan file in order to sell the loan. Please be advised that no loan can close without transcripts if the loan has been priced to an investor that requires them.
• Alternatives for files without transcripts are postponing the closing until transcripts are available or re-pricing the loan to an investor/ agency that allows delivery without them.
• It has been a company policy to have tax transcripts on all files. An exception to this policy might be possible if the agency permits delivery without transcripts. In some cases, certain loan files that are difficult to ascertain or validate income, may still require transcripts before the loan can close.
• The Social Security Administration will not be available to validate social security numbers. In cases where a discrepancy is identified, such as a credit report or Fraud Guard flag, please contact escalate to the underwriting manager to determine if alternate validation is available.
• There can also be issues with the ability to validation of Social Security income. If the loan file does not contain acceptable documentation, be advised that the SSA will not be available to provide any additional documentation until the government shutdown situation is resolved.
• FHA Lender Insurance will be available as long as there is commitment mauthority.
• CAIVRS functionality will be available
• FHA Connection will be available
• Lenders will be able to obtain case numbers
• Total Scorecard will be available
• Upfront MIP payment will be available.
• VA will be open for business as usual during the shutdown.
Fannie Mae and Freddie Mac
• Fannie Mae and Freddie Mac will be open for business as usual during the shutdown.
Senior Loan Officer
901 Warrenville Rd. Suite 400
Lisle, IL 60532
NMLS #191784 - 1st Advantage Mortgage NMLS #2551
1st Advantage Mortgage, a Draper and Kramer company
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