FHA & USDA BUYERS…….EXPECT DELAYS DUE TO GOVERNMENT SHUTDOWN

If you were in the middle of purchasing a home when the government shut down took place EXPECT delays with your financing. This just doesn’t apply to FHA, but to USDA financing as well. I have a listing where the buyer is USDA and we have already been told expect delays. I love our government. It shut’s down for two weeks and it will take longer than that to get things moving again. And these people are going to be in charge of our health care now? WOW

FHA to real estate: Expect a few delays

WASHINGTON – Oct. 21, 2013 – While most mortgages backed by the Federal Housing Administration (FHA) continued to function during the recent government shutdown, a letter sent by Deputy Assistant Secretary for Single Family Housing Charles Coulter has asked for patience as the agency gets back up to speed.

“We are very pleased to be fully operational and wanted you to know that we will be working hard to bring business back to normal,” Coulter said.

During the shutdown, FHA continued to endorse loans and handle most REO and servicing/loss mitigation activities. Coulter said FHA had “minimal interruptions” with FHA-insured mortgage loan originations and REO and servicing loss mitigation activities.

“However, since we had a very limited number of staff working during the shutdown, we have a considerable backlog of work,” Coulter adds. He notes delays specifically with:

  • Processing HECM endorsements and other cases that must be manually endorsed
  • Condominium project approvals
  • Incoming questions from lenders or borrowers
  • Some other FHA service functions

“We are prioritizing the backlog and will be working to address more critical items within 30 days, and then to clear our backlog within 60 days,” Coulter said. “Please allow us time to respond to inquiries already submitted through the FHA Resource Center and the National Servicing Center.”

Coulter said it will “only slow the process” if documents or questions are resubmitted because it seems to be taking FHA too long to respond.

© 2013 Florida Realtors®

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