Government Shut Down Would Affect FHA Lending

The pending government shutdown could affect FHA lending and conventional lending and cause delays. 

FHA would be affected since employees who work for FHA are government employees.  Which means that obtaining a FHA case number which is generated in the beginning stages of an FHA loan, would be delayed.

Obtaining an FHA endorsement, which is required prior to an FHA loan funding, would also be delayed.

One other item that is critical that could be delayed is obtaining the 4506 form from the IRS which these days is required on all loans.  This is the form that a borrower signs that gives the lender permission to verify that the tax returns and income you are submitting to the them is consistent with what your government tax returns you submitted.

Usually obtaining the 4506 information takes several days, but if we have  a shutdown, expect further delays.  We all have to have some patience in these times, and build the delays into our borrowers/customers expectations so hopefully you don’t need to get a rate lock extension because of this delay!


Kevin Walton

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