Government Sponsored Enterprises
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. Loans will continue to be bought from lenders making agency loans.
The Making Home Affordable program, including HAMP and HAFA, will not be affected as the program is funded through the Emergency Economic Stabilization Act which is mandatory spending, not discretionary.
Federal Housing Administration
HUD’s Contingency Plan states that FHA will endorse new loans in the Single Family Mortgage Loan Program, but it will not make new commitments in the Multi-family Program during the shutdown. You can expect some delays with FHA processing. Home buyers rest easy. Appartment buyers and developers may have concerns.
VA Loan Guaranty Program
Lenders will continue to process and the Veterans Adminstration will guaranty mortgages through the Loan Guaranty program in the event of a government shutdown. Expect some delays during the shutdown.
The Federal Emergency Management Agency (FEMA) confirmed that the National Flood Insurance Program (NFIP) will not be impacted by a government shutdown, since NFIP is funded by user premiums and not budget dollars. Isn’t it guaranteed by tax dollars in the event of super catastrophe. I will look into this…
Rural Housing Programs
Lenders will not receive approvals during the shutdown. If the lender has already received a conditional commitment from the Rural Development office, then the lender may proceed to close those loans during the shutdown as a conditional commitment is good for 90 days.