News From the FAMP Government Affairs Committee

News from Kimber White, Chair and Legislative Liaison
October 1…Government Shutdown in Effect…Now What?

Federal agencies are preparing for a shutdown of large portions of the government that would become effective beginning October 1, 2013. The information outlined below addresses the impact on the mortgage industry:


The FHA should not be significantly impacted, providing the shutdown is brief. HUD has provided the following information that applies to our daily operations:

  • FHA will be able to endorse single family loans, however, only a limited number of FHA staff will be available, so the process may take longer.
  • Limited FHA staff will be available to respond to questions, emails or other correspondence.
  • You will still be able to obtain a FHA case number from FHA Connection.
  • CAIVRS and FHA Total Scorecard will still be available.
  • Should FHA run out of commitment authority during a shutdown, then all lenders’ Lender Insurance approval will be temporarily suspended.


Continue originating VA loans; the Department of Veterans Affairs (VA) will continue to operate if there is a government shutdown.

  • Obtaining the veteran’s Certificate of Eligibility online through the webLGY will still be available.
  • Submitting applications for new COEs and follow up on COEs requiring more research with the Atlanta Eligibility Center will still be available.
  • Ordering appraisals the Veterans Information Portal will still be available.

Rural Housing / USDA:

Updates from USDA are not available at this time. They will likely cease issuing a Conditional Commitment until the shutdown is resolved.

Internal Revenue Service (IRS):

The IRS has indicated that they will not process any forms, including the issuance of tax return transcripts (Form 4506T) during a government shutdown, which will delay loan processing.

Social Security Administration (SSA):

In previous shutdowns, the SSA has only retained employees that deal directly with the processing of new claims and benefits. The likelihood is we would not be able to continue to verify SSNs through the SSA, which will delay loan processing.

Flood Insurance:

It may be difficult to obtain flood insurance through FEMA during this period. Please note that PHM requires evidence of flood insurance at time of purchase or closing. 

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