How Does the United States Government Shutdown Effect Real Estate

10/4/13

 
As you know congress failed to approve a Continuing Resolution providing funding for most government operations, in essence, shutting down spending authority for most of the government as of September 30th. Here are a few areas of our government and how this shutdown has impacted their authority to conduct business in relations to the Real Estate arena.

FHA or Federal Housing Administration-HUD's plan state that FHA will endorse new loans for Single Family Mortgage Loans but will not make new commitments in the Multi-Family Program during the shutdown. At a minimum you should expect major delays with FHA processing.

FEMA-The NFIP or National Flood Insurance Program will not be impacted by the government shutdown.

Department of the Interior-BIA announced that there will be no processing or recording of property transaction on Leased Indian Tribal Land during the shutdown.

The US Department of Agriculture will not issue commitments or loan approvals during the shutdown. 

Fannie Mae and Freddie Mac will continue operating normally, as will their regulator, the Federal Housing Finance Agency, since they are not reliant on appropriated funds.

Posted by Kevin Aizenshtat, Realtor, with Gulf Coast International Properties. Kevin can be reached at 239-777-1451 or [email protected].

Warmest Regards,

Kevin Aizenshtat
Realtor
239-777-1451
[email protected]



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