As the Federal government is in negotiations today to avoid an overall shutdown, the National Association of Realtors (NAR) has taken a look at what the potential shutdown would mean for the real estate industry.
According to Realtor.org, the continuing resolution (CR) that provides funding for government operations is set to expire today. If a solution is not agreed upon by the end of the day, funding for many vital programs could shut down as early as Saturday. Below is the NARs summary of how Federal Housing programs would function in light of a shutdown.
Federal Housing Administration
In the event of a shutdown, the Federal Housing Administration would be unable to provide endorsements for new loans in the Single Family Program or make commitments in the Multi-family Program. Management & Marketing Contractors managing the Real Estate Owned portfolio would continue to operate. FHA would continue operational activities like collecting premiums and paying claims.
VA Loan Guarantee Program
Lenders would continue to process and guaranty mortgages through the Loan Guaranty program.
Internal Revenue Service
In the event of a shutdown, the IRS would be unable to process federal income tax returns or issue refunds (it can deposit tax payments).
The Federal Emergency Management Agency (FEMA) confirmed that the National Flood Insurance Program (NFIP) would be unaffected by a government shutdown.
For the NAR’s complete synopsis, visit: http://www.realtor.org/government_affairs/gapublic/potential_shutdown