Posted by Christine/OK on 9/30/13 8:27am
Msg #486436

From Active Rain: "Government Shutdown...What happens to my

FHA closing Tuesday?"

"Fortunately while 90% of all loans are backed by the federal government a great portion of those are backed by Fannie Mae and Freddie Mac and while those two entities are government run they are funded from the fees they charge. Unfortunately The FHA does not work the same way and while the number of FHA loans have fallen off recently the FHA accounts for a large percentage of the loans currently being processed (roughly 60,000 per month). During a shutdown the FHA will be unable to insure loans and their staff will be unavailable to underwrite and/or approve new loans. According to HUD in the event of a shutdown only 350 of the 9,300 employees would be available to work."

See more at: http://activerain.com/blogsview/4206032/government-shutdown-what-hapens-to-my-fha-closing-tuesday-

Reply by Lee/AR on 9/30/13 9:19am
Msg #486438

To a degree, this happens every year while FHA waits for

next year's funding to come thru.

Reply by Luckydog on 9/30/13 10:04am
Msg #486440

Re: To a degree, this happens every year while FHA waits for

This happens every year once or twice, they always kick the can down the road instead of budgeting like the rest of us have to do. I do not think even if they shut parts and pieces of the government down is going to affect too much, only a temporary situation anyway.

Reply by Linda_H/FL on 9/30/13 10:38am
Msg #486442

Although this does have an impact on our work

this thread is taking a political turn - IMO this should be in JP, just like the one below.