Mortgage
Investors and the agencies have communicated that they continue to operate
business-as-usual and enforce their standard policies and guidelines. BUT cough. Only, Hopefully, lenders will follow this practice
and continue to operate business-as-usual. Without the tools needed: the screwdriver, hammer and show up for work U. S. government stamp on loan
originations, rate lock management, risk assessment, borrowers, realtors, home owners will experience closing and funding disruption. The government shutdown may slow, delay or tangle your loan closing.
"Mine government is the main source of real estate mortgage loans" -- call your Republican Congressman (woman) (person of interest)
October 1 2013 the United
States Government and many American Federal offices were closed. What details will be shutdown that relate to home loans?
·
4506-T’s – The IRS is not validating tax
transcripts at this time. The IRS is mostly closed and employees are send home
without pay. Tax transcript validation is needed to close mortgage loans and
verify that Borrowers/ Buyers / Homeowners actually filed the returns they
supplied. Once submitted to the 4506-T vendor, most vendors will hold 4506-T
submissions in queue for processing when government services are again
available. 4506-T requirements for loan submission and funding are
unchanged, without this information funding is not going to move forward.
·
SSN Validations – The Social Security
Administration is not validating social security numbers at this time. Once submitted
to the SSN vendor, the vendor will hold the submission for processing when
government services are again available. SSN validation requirements for loan
funding are unchanged for mortgage bankers, banks, lenders, etc...
·
USPS Address Verifications – USPS address
verifications are available.
·
Federal Government Employee Verbal Verifications of Employment –
Investors and agencies require that VVOE’s be conducted on all loans, and
specifically when the lender knows or believes that there has been a disruption
in employment. To ensure that mortgage lenders meet investor and agency
requirements, verbal verification of
employment (VVOE) can be documented, and also re-verify employment at funding
for all federal government employees. Loans to federal government employees can
close once the requirements for VVOE are met.
·
Rate Locks and Rate Lock Extensions – The
rate lock and extension policy continues
unchanged at this time. Rate lock fails are the responsibility of the Borrower,
without funding source, information sources and the United States Government
(thank you President Obama and the Republican factions for not compromising)
cooperating closing a government loan (i.e.: 95% of all residential loans in
the United States are halted, frozen, in limbo not good)
·
FHA/VA – The following FHA/VA services remain available at this time:
a. CAIVRS
b. Appraisal Logging
c. Case Number Assignments
d. LDP/GSA
·
USDA – The USDA has discontinued operations at this time. Continue
following policy regarding conditional
commitments. USDA loans can proceed with closing when conditional commitment requirements are met.
Locks on USDA loans that have not received conditional commitment are not
permitted. The impact on GUS approvals is being assessed.
·
FEMA – Impacts to FEMA operations are still being assessed. Flood
certifications will not be available after a few days. It is anticipated that
while flood certificates will be available, disputes and redetermination
requests will not be responded to during this event. In 1995 this went on for
22 days. The repercussions for government loans, was a backlog of 30 plus
+days.
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