Wednesday, October 16, 2013

When I went searching for new consumer and homeowner news this month, it was remarkable to discover how many of the government websites providing or linking to important homeowner information were darkened by the lengthening shutdown.

Nonetheless, I found a few key points of information if you are in the process of buying or selling a home.

Ahead of that October 1 shutdown, a number of agencies released information about the availability of services including a list of HUD/FHA Information Resources that will remain available.

They include:

HUD/FHA Resource Center: (800) 225-5342

HUD/FHA National Servicing Center: (877) 622-8525

HUD’s primary internet site:  http://www.hud.gov  (which will not be updated)

The FHA Resource Center FAQ site: http://www.fhaoutreach.gov/FHAFAQ

Anyone engaging the agency should also note that HUD/FHA staff will not be available to respond to case specific questions. All questions that cannot be answered by contract staff at the Resource Center and the NSC will be deferred until the government re-opens.

And be aware that HUD Staff will not be available to process incoming mail during a government shutdown so business partners should suspend shipment of documents and approval packages including FHA Test Cases, HRAP condominium approval packages, NAID requests, etc.

Industry expert Dan Keller (mymortgageguydan.com) blogged that FHA and VA loans are not going to be affected, but as with any type of financing, IRS tax return transcripts (form 4506T) must be ordered on a borrower to ensure the tax returns submitted match with the IRS filed returns. Also, a social security authorization form is required.  

Keller says both of these processes have been handcuffed with the government shutdown delaying all his mortgage approvals/fundings. He also points out that once the government opens, consumers can expect longer than usual delays for banks to get the 4506T and social security authorizations back due to the pipeline of requests now building up.

Finally, if you are looking for a home, Economist Ellen Haberle told Urban Turf contributor Shilpi Paul (dc.urbanturf.com) that in an already tight inventory situation, some sellers are worrying about the lessened demand, and are taking their homes off the market or delaying a listing until the shutdown has lifted.

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