We live in dramatic times. The government has shut down for the first time in 17 years. The price tag for this is roughly one billion dollars, per week. This is largely because of unpaid government workers furloughed by the incident. More far-reaching economic events will undoubtably unfold, the longer the goverment remains in shut down mode.
Most Americans are wondering how this development will effect the financial world, and many are worrying about the mortgage industry. We of Palm State Mortgage thank you for visiting our blog, and we now invite you into our virtual office, to calmly and coolly, consider these worries, and perhaps bring you a little peace of mind.
A Little Background
In this blog, Palm State Mortgage Company briefly and simply takes a look at how the government shut down is effecting the loan industry. Indeed the situation is in constant flux, and every time this blog is written, more developments unfold in this hot story. For example, as of this morning, it was predicted that the shutdown would only last a week, and now, at early evening, the Wall Street Journal is reporting that it could continue two weeks or more.
Not to borrow trouble, by looking toward the future, but Oct. 17th will soon be stressing legislators also. “That is the date the Treasury Department has said the country will no longer be able to continue paying all its bills, and gives Congress a larger deadline— over the need to raise the nation’s borrowing limit.” Experts say, we’re “sort of sliding into a situation where these two fights effectively merge into one.” They also summarize, “you might have, once we’re in it, a short-term” spending bill “that encompasses that debt ceiling.” Like we said, we are living in dramatic times.
About Your Loan During The Shut-Down: Three Things We Know For Certain!
1. Despite original misinformation released by HUD, loans are still being processed by the FHA; “FHA will be able to endorse single family loans during the shutdown. A limited number of FHA staff will be available to underwrite and approve new loans.”
2. If you are in the middle of a home loan now, a re-finance loan, or a first time buyer, be prepared for slow service or delays.
3. With the IRS shut down, it might be difficult for a borrower to authenticate vital records needed for loan processing. Matters of identification might become slower due to closing of the social security system. It is also likely that small businesses seeking government-backed loans will be disappointed, since such loan business will likely be suspended.
Even in times of uncertainty or crisis, Palm State Mortgage is here and open, to answer your questions. Feel free to contact us on your mortgage matters. We invite you to continue visiting Palm State Mortgage Blog, as we continue to bring you the latest information on the government shut-down. We will continue to investigate this important issue, and the ongoing saga of American Life in the 21st century. We do indeed, live in dramatic times.