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Government Shut Down Will Slow the Processing of Mortgages

The government shut-down will increase the length of time that it takes to obtain a mortgage.  Below are listed some of the expected consequences of the shut-down.

  • On all Conventional (Fannie Mae and Freddie Mac), FHA, VA, and USDA loans “4506T” results are required.  A “4506T” result is the response from the IRS that provides the “numbers” from a person or company’s tax return.  All of the aforementioned loans require this validation from the IRS in an attempt to stop fraud.  The IRS response time to these requests are expected to increase because some of the employees handling this task have been furloughed.  The turn time for this process is expected to increase, as the length of the shut-down increases.


  • Some loans require a verification of a person’s social security number.  This is done through the Social Security Administration (SSA).  At this point, it is expected that the SSA will not process these requests during the shut-down.


  • FHA will have a reduced staff to answer questions, and address any exceptions/clarifications.


  • United States Department of Agriculture (USDA) provides 100% financing for purchases in rural areas.  USDA is no longer issuing loan approvals due to employees being furloughed.


If you have any questions about how these changes may affect you, you should contact a licensed mortgage professional.