How Does the Government Shutdown Impact Lending?


Internal Revenue Service (IRS)
Internal Revenue Service (IRS) (Photo credit: cliff1066™)

 

My daughter lost a tooth last night and I was so tired at bedtime that I fell asleep and forgot to do the whole tooth fairy gig.  This AM, I blamed it on the government being shut down.

 

As for mortgages, there will be a few areas impacted by the shutdown:

 

  1. USDA can’t issue conditional commitments until the government is full operational again.  This is a big deal if you are doing a USDA loan
  2. Lenders can’t order 4506T forms from the IRS.  We have to verify that tax returns are legitimate on 100% of the loans we do.  This can and will delay fundings if the 4506T results aren’t in yet
  3. Lenders can’t order social security verification from the social security administration.  Like number 2, this can delay fundings.

 

Hopefully clearer heads will prevail on Washington soon and it will be business as usual.

 

Have a great day!

 

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