Jan 1 2019 26715 1

Dated: 01/01/2019

Views: 89

Many of you who are considering a loan to purchase your new home, are worried how the government shut down may effect you. Do  not fear. It isn't as bad as one would think. I have borrowed this information from one of my lenders to share with you. It's good to know it is still possible for you to obtain your loan. 

Current Impact of Government Shutdown

Effective immediately, due to the government shutdown, Caliber is implementing the following temporary changes:

Loan Type/Issue

Impact

Fannie and Freddie

Not affected.

Ginnie Mae

Will continue to issue securities.

VA

VA Loan Guaranty Program is exempt during a government shutdown and therefore will remain operational.

FHA

Will continue issuing case numbers and insuring loans.

§  DELRAP condominium approvals can continue to be processed.

§  HRAPS condominium approvals cannot be processed and should not be submitted for processing during the government shutdown.

USDA

§  USDA will temporarily be unable to issue new commitments or guarantee closed loans.

§  Caliber will continue to close loans if a commitment is already issued; USDA will guarantee them after the Government shutdown is over. If no commitment has been issued, loan will be unable to close until commitment is obtained.

Tax Transcripts

§  Internal Revenue Service (IRS) will be unable to issue tax return transcripts.

§  Caliber is suspending the requirement for IRS Tax or W-2 Transcripts to close a mortgage loan unless the underwriter deems that the tax transcripts are required due to a red flag.

§  On Jumbo, Caliber Portfolio Lending, and Bond loans, the tax transcript will be pulled post-closing and prior to delivery.

§  Completed 4506-T forms, signed at closing, continue to be required.

Social Security Validation

§  For verification of the borrowers’ social security numbers, the social security numbers must match on the credit report, W-2/tax return, and social security card.

§  If Form SSA89 is required, then the validation of the social security number must be received prior to closing.

Flood Insurance

§  The National Flood Insurance Program will not be issuing new or renewing any policies.

§  For loans that require flood insurance, proof of flood insurance coverage is required prior to closing.

§  As a reminder, FHA does not accept private flood insurance.

Government Employees

For borrowers employed by the federal government who are on a mandatory furlough from their jobs must return to work prior to closing to use the income for qualification purposes.

 

Additionally, the following documentation is required:

§  Verbal verification from the employer reflecting that the borrower has returned to work under the same terms as prior to the furlough, and

§  A copy of most recent pay stub verifying that the borrower has returned to work to support the qualifying income used for the loan.

Questions? Contact your lender or me. 

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Mary Phillips

I was born and raised in Missouri. Raised 4 wonderful children along with about 50 other kids in the show me state. My passion has always been to serve others and have fun doing it. Which is why....

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