2013 Purchase Markets News » Shutdown prompts temporary mortgage changes

loan-mortgage-loans-low-rate-low-fee Loans Madison WI St Louis MO Denver CO Hannibal MO Online Loan Applications

Home » News » Home Buyers | Where the housing market is heading | 800-228-9270 | Refinance | Options | Tools | Contact 

Mortgage Loans Denver CO  | Mortgage Loan Madison WI | Mortgage Loans Hannibal MO

Apply Now             Buy a Home             Refinance

 

Shutdown prompts temporary mortgage changes

Purchase Markets \  October 9, 2013 11:20 am

Shutdown prompts temporary mortgage changes

"We're issuing this guidance to help ensure the continued smooth operation of the mortgage market during the temporary shutdown of the federal government," said Dave Lowman, executive vice president of single-family business at Freddie Mac. "Today's bulletin is intended to give lenders the certainty to continue approving and delivering new mortgages that meet Freddie Mac guidelines to eligible borrowers, such as federal employees and contractors, during the temporary shutdown."

Guidance outlines
The new guidance allows for lenders to send mortgages to Fannie Mae even if the borrower isn't receiving a paycheck because they are on furlough. While the IRS is closed during the shutdown and unable to process paperwork usually necessary for loan options, borrowers will instead be able to present lenders with their most recent tax transcript forms to be evaluated.

Those affected by the shutdown are also eligible for Fannie Mae's relief policies. Certain private and public sector employees will be granted forbearance from loan payments for three to 12 months due to the temporary shutdown. Forbearance is not allowed to be reported to credit bureaus. The new guidance will help borrowers whose employment is affected by the government shutdown.

"We are also reminding servicers of our forbearance options to assist qualified homeowners with Freddie Mac mortgages to minimize the shutdown's impact on our nation's families and communities," Lowman said.

USDA impact
While the FHA had not planned to close its doors during the shutdown, some staff was sent home, increasing loan processing times and making it difficult to obtain reverse mortgages. If the shutdown remains short-lived, it is unlikely there will be a significant impact on FHA loans.

However, the small percentage of loans that come from the USDA have been halted completely. The USDA provides loans to rural borrowers and represent only 1.4 percent of all mortgage loans, about 132,000 per year, according to Bloomberg. Getting its start during the Great Depression, USDA loans allow borrowers to get a mortgage with zero-down payment. While only a small percentage of total mortgage activity, the closure of the USDA has halted all processing and could impact the housing market overall if the shutdown continues to drag on.

"The last thing we need is anything that shakes the confidence in a softly recovering housing market," David Stevens, chief executive officer of the MBA and former head of the FHA, told Bloomberg.

 

fha-loan-purchase-a-new-home-get-approved-home-buying-couples Missouri Wisconsin Illinois Missouri ColoradoMortgage Lending Real Estate Knowledge Base

Questions about buying or selling your existing home?  

Categories:  All | Choose a REALTOR | Working with a REALTOR | Buying | Selling Financial | Homeowners 

 «  1 | 2 | 3 | 4 | 5  » 

Mortgage and Real Estate News Categories

Buyers | Market Conditions | Mortgages | Purchase | Realtor | Refinance

Home Financing Archive

August 2013 | September 2013 | October 2013 | November 2013 | December 2013 | January 2014 | February 2014 | July 2014 | August 2014 | September 2014 | October 2014 | November 2014 | December 2014 | January 2015 | February 2015 | March 2015 | April 2015 | May 2015 | June 2015 | July 2015 | August 2015 | September 2015 | October 2015 | November 2015 | December 2015 |  January 2016 | February 2016 | March 2016  

USDA-Loans-100-Refi-No-Downpayment

Real Estate Lending Options

Mortgage Banking Learning

Mortgage Glossary | Refinancing | Loan Options | Home Purchase Basics

Home Borrower Tools

How Much Can I Borrow? | Mortgage Calculator | Mortgage Rates | Forms 

About Thompson Kane and Company LLC

Company | Executive Management Team | Senior Loan Originators 

Home Purchase Loans in Madison and Milwaukee WI  

Mortgage Loans Springfield, Hannibal, St. Louis, MO

Purchase Real Estate Loans Denver, Boulder, CO

Google Maps: Mortgage Loans Madison WI, O'Fallon MO, Denver CO

Facebook: Mortgage Wisconsin, Mortgage Missouri, Mortgage Colorado

 

Apply Now             Buy a Home             Refinance

 

  800-228-9270

 

VAFHA and USDA Home Loans in ColoradoIllinoisMissouri and Wisconsin
TThompson Kane Mortgage Loans Madison WI, Denver CO, St Louis MO | 800-228-9270 | Mortgage Calculator Options with Loan Quotes. Get Started Now With TK Loans Mortgage! Lock Your Rate · Calculate Payments · Compare Loans · Skip the Bank · Types: FHA Loans, HARP, VA Loans, ARM | Boulder, Ft Collins, Aspen, Pagosa Springs, Colorado Springs, Pueblo, Golden, Grand Junction, Steamboat Springs, Denver CO, Hannibal, Springfield, Troy, O'Fallon, St Louis MO, Chicago, Quincy IL | Home Loans in Armenia WI, Baraboo WI, Beaver Dam WI, Beloit WI, Brooklyn WI, Columbus WI, Deforest WI, Dell Prairie WI, Dodgeville WI, Edgerton WI, Fitchburg WI, Fort Atkinson WI, Germantown WI, Green Bay WI, Green Lake WI, Janesville WI, Lacrosse WI, La Valle WI, Lake Delton WI, Lake Mills WI, Lodi WI, Madison WI, Mauston WI, Mazomanie WI, Merrimac WI, Middleton WI, Milton WI, Milwaukee WI Monroe WI, Montello WI, Mount Horeb WI, Necedah WI, Oregon WI, Platteville WI, Portage WI, Prairie Du Chien WI, Princeton WI, Reedsburg WI, Ripon WI, Rome WI, Spring Green WI, Stoughton WI, Sun Prairie WI, Tomah WI, Verona WI, Watertown WI, Waunakee WI, Windsor WI