As you are all aware, a
government shutdown is in effect starting October 1, 2013. No estimated
timeline has been issued for resolution of this event. The shutdown will
affect several key areas for the mortgage industry:
4506-T requests: The IRS has furloughed its
workers and no transcripts requests will be processed until the furlough
ends. Once normal IRS operations resume there will be an inevitable
back-log of requests to be processed. Delays are to be expected.
NOVA has received information from our correspondent
lending partners that the requirement for IRS transcripts remains in place.
Loans currently in line for
underwriting/closing/funding should already have transcripts in the file,
so no delays are anticipated for those transactions.
Exceptions may be granted to fund loans for
wage-earners if the shutdown continues for a long period and we are unable
to obtain transcripts. We will review those files on a case by case
basis but we can provide no assurance at this time that every request will
Validation requests of Social Security Numbers will not
be available until the furlough ends and Social Security personnel are
back to work. Requests may still be forwarded but will not be
returned until after the shutdown ends.
should anticipate delays for current and/or new transactions and add a
minimum of 15 days to each lock request until such time as the shutdown
ends. Baking in additional time to obtain transcripts will prevent an
excessive number of lock extensions.
Employees working for the federal government may now be
furloughed. Obtaining VVOE‚Äôs prior to funding is still a requirement by
our correspondent lending partners. If verification of employment
for a federal worker cannot be obtained, the loan may not fund until such
time as the shutdown ends and proper verification is received.
The insuring process for FHA loans will remain
unchanged and FHA Connection should remain stable. However, there
will be no workers in the FHA Offices ‚Äď so there will be no help available
in the event of questions or special requests.
VA Offices should be open and functioning as usual.
All Rural Housing loans
require Conditional Commitments.
However, personnel at USDA offices will not be
available until after the furlough ends and therefore, delays are to be
All production staff should be
proactive in providing their clients and referring partners with the
information above. The government shutdown will affect many aspects of
American life and we will endeavor to be as flexible as possible to accommodate
as many borrowers as we can, but NOVA must also adhere to the standards and
requirements set forth by our correspondent partners.
Author:Joshua Smith Phone: 623-703-7445 Dated: October 2nd 2013 Views: 581 About Joshua: ...
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