A number of government run programs important to the real estate sector are likely to be affected by the government shutdown that began last weekend following the failure of lawmakers to pass short-term budget legislation.
RealtorMag reports that the National Association of Realtors is working closely with officials at Congress and in the White House to ensure that lawmakers are “aware of the importance of keeping programs critical to communities operating without interruption”.
One of these programs includes the National Flood Insurance Program, which loses its authority to sell flood insurance policies. That means the NFIP cannot renew or sell new policies, though existing policies remain unaffected until they expire.
The shutdown also means we can expect delays in the processing of Federal Housing Administration–backed mortgages, the NAR said. The shutdown means the FHA is forced to furlough non-essential employees, which in turn means that we can expect delays in the processing and approval of loans. Those mortgages backed by Fannie Mae and Freddie Mac are not affected; neither are those backed by the U.S. Department of Veterans Affairs.
The shutdown will also affect people’s ability to obtain taxpayer information from the Inland Revenue Service. Transactions are likely to face delays, the NAR said, as IRS offices will also be subjected to furloughs of non-essential employees and therefore will take longer to respond to requests.