HUD warns FHA-insured loans would cease in shutdown

Contingency plan, Federal Housing Administration, Federal takeover of Fannie Mae and Freddie Mac, fha, FHA Loans, Government shutdown, Kentucky Mortgage Loan, Loan Guaranty Program, Mortgage loan, United States Department of Agriculture, United States Department of Housing and Urban Development, VA loan

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HousingWire – Christina Mlynski

In the event of a government shutdown, most Federal employees are required to stop working because no funds would be available to pay staff, ultimately ceasing most housing agency’s functions. Consequently, the Federal Housing Administration will be unable to endorse any single-family loans and staff will be unavailable to underwrite and approve new loans, according to a Department of Housing and Urban Development’s latest report. If an application for an FHA-insured loan is not approved by the time of the government shutdown, it will not make it through the system, impacting affordability opportunities for homeowners.

Given that government-backed mortgages account for more than 90% of loans, the shrinkage in volume flow would critically hit the housing market. When put into perspective, more than 9,000 HUD employees, only 3.8%, or 350 employees, will be able to work, according to HUD. Nonetheless, it’s important to note that there…

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10 thoughts on “HUD warns FHA-insured loans would cease in shutdown

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    days Qualifying
    Ratios
    Program Rate Points APR
    Conforming 30 year FRM 4.375 0.000 4.874 30 35 / 45
    Kentucky Mortgage Loans Only- Rates Change
    Conforming 20 year FRM 4.250 0.000 4.987 30 35 / 45
    Kentucky Mortgage Loans Only- Rates Change
    Conforming 15 year FRM 3.375 1.000 3.881 30 35 / 45
    Kentucky Mortgage Loans Only- Rates Change
    FHA 30 year FRM 4.000 0.000 5.651 30 35 / 50
    Kentucky Mortgage Loans Only- Rates Change
    FHA 15 year FRM 3.375 1.000 4.214 30 35 / 50
    Kentucky Mortgage Loans Only- Rates Change
    Jumbo 30 year FRM 5.990 1.000 6.875 30 28 / 36
    Kentucky Mortgage Loans Only- Rates Change
    VA 30 Year FRM 4.000 0.000 5.147 30 41 / 41
    Kentucky Mortgage Loans Only- Rates Change

    Adjustable Rate Programs

    Rates as of October 2, 2013 12:55:46 PM Old Date? Lock
    days Qualifying
    Ratios
    Program Rate Points APR Index Margin Caps
    Conforming 30/5/1 ARM 4.990 1.000 5.214 LIBOR 1.930 2/1/5 30 28 / 41
    Kentucky Mortgage Loans Only- Rates Change
    Jumbo 30/5/1 ARM 5.750 1.000 5.789 T-Bill 1.960 5/1/10 30 28 / 41
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    Jumbo 30/7/1 ARM 5.500 1.000 5.124 CMT 1.930 5/1/10 30 28 / 36
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    Jumbo 30/10/1 ARM 5.750 1.000 5.411 CMT 1.930 5/1/10 30 28 / 36
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    Rates Last Updated: 10/2/2013 12:55:44 PM

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