January 25, 2019

The Daily Bean | Navigating the Government Shutdown: Impacts on the Real Estate Market

The Daily Bean | Navigating the Government Shutdown: Impacts on the Real Estate Market

The Daily Bean | 1.25.19 | Issue 050

Welcome to The Daily Bean! The mission of The Daily Bean is to give you daily tips, resources, and timely information that you can act on to maximize your real estate career at Bean Group.

NAVIGATING THE SHUTDOWN: IMPACTS ON THE REAL ESTATE MARKET

As the partial government shutdown enters its second month, the effects on individuals and business sectors are increasing. For most buyer and seller clients, however, the impact to date on their home buying and selling transactions has been limited.

According to mortgage broker Karrie Burnett of Maritime Mortgage in Rye, NH, “It’s business as usual for the vast majority” in the mortgage world and there has been little impact on mortgage applicants, with one exception – those looking for USDA guaranteed loans.

On hold: the USDA loan program. The USDA, in conjunction with private lenders, helped over 140,000 qualifying buyers attain low interest, zero-down loans in 2017, and it’s an important home financing resource in some markets. Currently, the USDA is not issuing new rural loans or closing on direct loans.

Other important government processes and resources remain largely in place and functional:

  • The IRS is continuing to process requests for tax return transcripts, an important verification step in most mortgages to confirm income and prevent fraud.
  • Homebuyers continue to have to access to flood insurance through the NFIP, although dispute of flood plain status may be impacted.
  • FHA single-family residential loans are not currently being impeded, while the processing of some niche loans may be slowed.
  • GSEs Fannie Mae and Freddie Mac will continue operating as normal throughout the duration of the shutdown.

For additional recent information on the shutdown and its impacts on real estate:

www.nar.realtor/what-a- government-shutdown-means-for- realtors

www.housingwire.com/blogs/1- rewired/post/42336-monday- morning-cup-of-coffee-what-a- government-shutdown-means-for- housing