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.
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.
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:
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.
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:
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!
Mailing Address for Kathy:
228 Mountain Vista Blvd. Canton, GA 30115
Georgia Residential Mortgage Licensee #36474