Government Shutdown: What Does It Mean for HUD and Real Estate?
The morning of October 1st came without the passage of a new budget proposal for the government. Given that Americans have not seen a shutdown of the government in nearly eighteen years, many are wondering what to expect during this time for real estate – especially considering that 90% of all home loans in the United States are either insured, underwritten or outright owned by the federal government and the agencies and entities associated with it.
We cannot comment on those seeking to renew their passports, but single-families seeking a home loan can rest assured that their loan applications will continue to be processed. This development is promising, considering 30% of all home mortgages are underwritten by the FHA and VA. The Department of Housing and Urban Development has said that despite substantial furloughs, loans will continue to be processed, though some delays can be expected.
Fannie Mae and Freddie Mac have likewise issued assurances that they will continue operating during the shutdown. Given that these companies have other sources of income, it is unlikely that either will be affected by the shutdown.
- See more at: http://www.bankforeclosuressale.com/wp/article-10014433.html
How Will the Shutdown Affect FHA Processing?
How Will the Real Estate Recovery be Affected?
Plus... A video clip from the New York Times.