The government shutdown has closed Valley Forge Park and the Liberty Bell, but has it touched Conshy? We asked Borough Manager Fran Marabella how it is affecting municipal government and he replied that, “The shutdown will delay our Rehab Projects reimbursements and any Grant reimbursements that come from the Federal government.”
We saw on the news that home mortgages could be affected, so we emailed Conshy-based mortgage broker Dan Callan to ask for more details. “We received several calls today from nervous home buyers who are worried about what the government shutdown means to their mortgage loan.” stated Callan. For most borrowers in our area the shutdown really isn’t going to have much of an impact but there are certain things you want to make sure you and your lender are aware of.”
Callan broke down what is happening at the different loan programs:
- Fannie Mae & Freddie Mac – are private businesses and operate outside of the federal appropriations process and largely unaffected by the government shutdown.
- FHA – The biggest issue will be obtaining mortgage insurance through CAIVRS’. If your loan is in process your lender has already done this and you shouldn’t have any issues. Originally FHA said they would be closed but later came back and said they were still open but we’re putting 96% of our staff on furlough. With only 4% on staff I would expect some delays in getting the required insurance.
- USDA – If you have already received a commitment then you will be able to close your loan. No new commitments will be issued during shutdown.
- VA – has indicated that they will continue business as usual during the shutdown.
Other issues Callan pointed to would be verification of employment if you are a government employee. Lenders requiring an executed IRS Form 4506-T and/or a Request for Transcript of Tax Return, will have a problem since this service was not deemed essential by the IRS, thus the ability to process 4506T’s will be impacted. If you have any mortgage related questions, feel free to call Callan at (484) 716-5283.