Now that our friends at the Federal Reserve have changed the mortgage pay system for borrowers and broker, there is more “good’ news from Washington.
If a budget stalemate occurs and the money dries up because of the lack of a budge deal, the mortgage business comes to a halt.
Why you may ask? Well, below are just a few reasons.
Top reasons a gov’t shutdown stops mortgages:
Tax transcript: If the IRS is on furlough, we will not be able to obtain tax transcripts. If you have a registered/locked loan with us and have not already delivered it to the branch, please upload your completed and signed 4506T into eMagic TRIO now. Even though the TRIO folder will not contain a complete file, please upload your registration or lock confirmation and select “deliver to Underwriting.” You will need to check the audit trail in TRIO to confirm receipt by SunTrust Mortgage. We will order the transcripts prior to the shutdown to minimize a potential delay when you deliver your loan file.
Flood insurance: Borrowers may have difficulty obtaining flood insurance through FEMA during this period.
FHA: We understand that HUD may not support FHA Connection during their hiatus, and therefore we will not be able to order case numbers or perform other functions in FHA Connection while they are on furlough.
Rural Housing: We are not sure of the impact to GUS since that system was created since the last shutdown in 1995. However, we should anticipate the system will not be available. In addition we will not be able to get conditional commitments during the shutdown.
VA: We should anticipate that the system by which VA appraisals are ordered will not be available.
Other than that, Fannie and Freddie are sort of governmental agencies and they may not be able to communicate with the needed oversight people. Therefore, no one can make decisions.
I think we should all take a vacation! Oh wait, the air traffic controllers will not be there. I guess it’s back to the bunkers!