gov shutdown

Despite the furlough of over 96% of its staff members, the U.S. Department of Housing and Urban Development stated that the Federal Housing Administration will continue to process applications for single family home loans.  This information corrected an earlier statement by the HUD which said that the plan would be to cease working on applications for these government-backed mortgages in the case of a shutdown.

The underwriting and approval process is expected to be significantly slower than usual.  Regardless, the HUD notes the importance of loan processing in the midst of a shutdown.  Just last year 45% of all mortgages used to purchase homes were from loans backed by the FHA as well as the Veteran's Administration and the U.S. Department of Agriculture.  They declare they will remain active "in order to support the health and stability of the U.S. mortgage market."

To view the article that inspired this post, click here.