AMHERST, Mass. (WWLP) - We're in the second day of a partial government shutdown and if it continues it will impact buyers trying to apply for government-backed loans.
The Mortgage Bankers Association says that operations at The Department of Housing and Urban Development should not be significantly impacted if this shutdown is brief. The Federal Housing Administration will have a limited number of staff available.
But Rick Sawicki of Sawicki Realty told 22News the FHA will still be able to endorse loans, “In speaking to our mortgage brokers yesterday and people involved our first question is: if we are in a loan are we going to have problems?”
Sawicki continued, “And it seems to be right now, the answers we get from our mortgage brokers and our bankers is no.”
Sawicki says the shutdown adds a level of uncertainty in the housing market among buyers.
Mortgage processing will be delayed if brokers need to verify social security numbers or tax return transcripts. And that's because all IRS and Social Security offices are closed as a result of the shut down.