Home buyers are encountering new hurdles to getting a mortgage thanks to the government shutdown.
As the shutdown enters its tenth day, some lenders are delaying mortgage approvals and others are refusing applications entirely. Originations of mortgages backed by the U.S. Department of Agriculture, which are given to buyers in rural areas, came to a halt after the agency shut down last week. Separately, some lenders say it’s taking longer to process mortgages that are insured by the Federal Housing Administration, which has been operating with a limited staff since the shutdown. And some lenders are not originating mortgages at all until they can once again verify applicants’ income with the Internal Revenue Service, which is shut down.
As the shutdown drags on, even more mortgage applications could be derailed. “The first day we weren’t too concerned, but now we are a week in and procedural issues are starting to affect more loans,” says Mark Goldman, a senior loan officer at San Diego-based mortgage brokerage C2 Financial Corp...continue
As the shutdown enters its tenth day, some lenders are delaying mortgage approvals and others are refusing applications entirely. Originations of mortgages backed by the U.S. Department of Agriculture, which are given to buyers in rural areas, came to a halt after the agency shut down last week. Separately, some lenders say it’s taking longer to process mortgages that are insured by the Federal Housing Administration, which has been operating with a limited staff since the shutdown. And some lenders are not originating mortgages at all until they can once again verify applicants’ income with the Internal Revenue Service, which is shut down.
As the shutdown drags on, even more mortgage applications could be derailed. “The first day we weren’t too concerned, but now we are a week in and procedural issues are starting to affect more loans,” says Mark Goldman, a senior loan officer at San Diego-based mortgage brokerage C2 Financial Corp...continue