Programs important to real estate will be affected in the event of a partial federal government shutdown at midnight tonight if lawmakers fail to pass short-term budget legislation.
NAR is in regular communication with congressional leaders and the White House and is working with other organizations to ensure lawmakers are aware of the importance of keeping programs critical to communities operating without interruption.
There are three areas of concern for your business: 1) the availability of federal flood insurance under the National Flood Insurance Program, 2) delays in processing of FHA-backed mortgages, and 3) slower response times by IRS offices for tax information needed for real estate transactions.
NFIP’s authority to sell flood insurance policies expires at midnight tonight. Should the program lapse, NFIP will not be able to sell or renew policies. Existing NFIP policies will remain in effect until their expiration date.
Details and helpful links.
Under a shutdown, FHA will furlough non-essential employees. Delays are possible in loan processing and approval. Mortgages backed by secondary mortgage market companies Fannie Mae and Freddie Mac are not affected, nor are mortgages backed by the U.S. Department of Veterans Affairs.
To the extent taxpayer information from the IRS is needed, transactions can face delays as IRS offices, subject to furloughs of non-essential employees, take longer to reply to requests.
*Information is derived from the National Association of REALTORS®