WASHINGTON – Monday, Sept. 30, 2013 – Contrary to widespread media reports, new Federal Housing Administration (FHA) single-family home loans will be processed if the expected government shutdown occurs at midnight.
Florida Realtors® confirmed details contained in a Housing and Urban Development (HUD) contingency plan posted online. According to George Gonzalez, a deputy press secretary at HUD, the Office of Single Family Housing will endorse new loans and maintain the minimum operations necessary to support FHA’s existing portfolio through the FHA Call Center and the National Servicing Center’s Call Center.
Already scheduled closings on multi-family projects with firm commitments will proceed. Some services, such as the processing of change orders or construction inspections, will be affected during the first 10 business days of the shutdown.
VA home loans will continue to be processed as well, according to the U.S. Department of Veterans Affairs. Florida Realtors could not confirm by press time if this includes new loans as well as loans already in the system. The Veteran Benefits Administration, which oversees loans and the National Call Centers, among other things, employs 21,237 people. Funding is available to support all employees for some period of time.