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Potential Government Shutdown / Impact to Government Loans - MUST READ!
April 8th, 2011 6:10 AM

Potential Government Shutdown / Impact to Government Loans - MUST READ!

Implications of Government Shutdown


While we are still hopeful that a shutdown will be avoided (or another continuing resolution passed), it is unlikely that there will be any decision until the last minute.  We understand the President is meeting with Speaker Boehner and Senate Majority Leader Reid at 1:00 p.m. EDT today.  


Below is the latest information we have on the implications at the housing agencies.  However, no final decisions have apparently been made.   We do expect FHA & Ginnie Mae will publish FAQs if the shutdown does occur.  




We have been advised that FHA Connection will be operational except that you will not be able to perform CAIVRS' checks or obtain insurance endorsements (including lender insurance).  You will also not to be able to pay upfront premiums.  However, we have been told that you will be able to obtain case numbers.  


We recommend that clients ( this is the lender) run CAIVRS' checks immediately on all loans that you want to close in the next week or two in case the shutdown does occur.  A CAIVRS' problem is likely the most immediate impediment to obtaining insurance once the loan the program is reinstated.


Ginnie Mae  


If a shutdown is announced, Ginnie Mae has told us that will publish FAQs and answers on the website to address program operations.  We have been told that functions such as handling of principal and interest payments to investors in pools and "proceeding with pooling as pool or pool packaged are delivered" will continue.  It is unlikely that Ginnie Mae will provide new commitment authority during the shutdown though no final decision has been made.




USDA has advised us that lenders will be able to close loans for which they had already received a commitment.   However, lenders will not be able to get the Loan Note Guarantees for them until the shutdown is over.

During the shutdown, USDA will not issue any new commitments or Loan Note Guarantees for closed loans.  Unlike FHA, USDA will not operate GUS, its automated system,  during any shutdown.




VA has indicated that they will continue business as usual during the shutdown.  We have asked VA if there has been any change.


We will update you on the possible shutdown  as soon as we have new information.


Let's pray we do not get affected by this, but we must be prepared just in case.




Posted in:General
Posted by Kathy Delbridge on April 8th, 2011 6:10 AMPost a Comment

HomePath® Buyer Incentive

Fannie Mae is currently offering buyers up to 3.5% in closing cost assistance through June 30, 2011.

The HomePath property buyer must meet the following qualifications to be eligible:

  • Buyers and/or selling agents (the agent representing the buyer) must request the incentive upon submission of initial offer in order to be eligible.
  • The initial offer must be submitted on or after April 11, 2011 and close by June 30, 2011. If an initial offer was made prior to the effective date, the offer is not eligible for the incentive.
  • The sale must close on or before June 30, 2011. No exceptions will be made to this deadline.
  • Only buyers purchasing a HomePath property as their primary residence may receive up to 3.5% in closing cost assistance. Second homes and investment properties are excluded from the incentive.
  • Buyer must sign the Owner Occupant Certification Rider to the Real Estate Purchase Addendum.
  • If a buyer's total closing costs are under 3.5%, the difference will not be available as a credit to the buyer.
Note: Fannie Mae can give no assurance on the time required to close, but initial offers submitted after May 15, 2011 are particularly questionable for closing by the incentive deadline of June 30, 2011.

In a few states, a bonus promotion may be available to selling agents who close on an owner occupant property meeting the above terms & conditions.

Retail and public entities are eligible for the incentive; however pool and auction sales are not eligible.

The incentive may not be available for a property where Fannie Mae acquired the property in connection with financing under a reverse mortgage. Ask the listing agent for details

Fannie Mae reserves the right to remove any property from promotion or end the promotion at any time. Any dispute over the payment of the incentive shall be resolved by Fannie Mae in its sole discretion.

Buyers should consult their lenders for guidance on financing. Lenders and mortgage products may impose their own limitations on the use of the 3.5% incentive. For example, the lender may consider the incentive a Seller Contribution and limit the amount to 3.0%. In those instances, the remaining 0.5% will no longer be available to the buyer.

Posted in:General
Posted by Kathy Delbridge on April 12th, 2011 7:49 AMView Comments (1)

TWO Very Important Dates Approaching / Affects FHA Homebuyers and certain VA eligible Military Personnel

There are two very important dates that every FHA Homebuyer must be aware of, as well as certain military personnel seeking homeownership. Here they are:

  1. FHA loans will begin to costs more, effective with all FHA Case #'s assigned on or after 4/18/2011.
  2. Certain military personnel have up until 4/30/2011 to enter into a binding agreement on a new home to be eligible for the Homebuyer Tax Credit.

If you'd like additional information on the full details on each of these, be sure to read my two previous blog posts prior to these two posts.

I am here to help and LOVE helping new homeowner's purchase their new home!

Enjoy and make it a GREAT day!


Kathy Delbridge

Posted in:General
Posted by Kathy Delbridge on April 7th, 2011 5:03 AMLeave a Comment


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