FHA: We Will Not Be Endorsing Any Loans During Government ShutdownSubmitted by bobbyw24 on Fri, 04/08/2011 - 19:52
“FHA will not be issuing any endorsements during the shutdown,” a HUD official told National Mortgage News. He noted that the no-issuance policy applies to single as well as multifamily product. In short, its underwriting department will shutter.
Moreover, 80 FHA field and regional offices will close for business if Congress cannot come to terms on a budget deal. Those FHA employees will not be paid.
According to figures compiled by NMN and the Quarterly Data Report, FHA coverage accounts for three out of every 10 new mortgages written.
“This shutdown will happen in the middle of a fragile housing recovering,” the HUD official said. “This is not the time to turn off the tap on granting mortgage authority.”