How will the Government Shutdown Impact Reverse Mortgages?

January 22, 2018

 

The government shutdown is the hottest topic of discussion because of the impact it is having on multiple industries. The reverse mortgage sector is no different as there are some very large concerns that arise. 

 

"...unlike pretty much all other Federal Housing Administration loan activity, Home Equity Conversion Mortgage endorsements would come to a complete halt if the government were to shut down," according to Reverse Mortgage Daily.  

 

"According to an FHA resource compiled during the last federal government stoppage back in 2013, the FHA can continue to endorse single-family loans, with the caveat that the process may take longer with substantially reduced staffing levels."

 

The report also states that there are plenty difficulties that applicants would run into as well. Social Security Administration employees won't be available to verify SSN's for applicant identification which will likely push back those HECM applications.

 

It is important to have this identification because it is used in instances where information on the application is questionable. 

 

According to the report, the previous government shutdown impacted 17% of home closings causing delayed status. 

 

To learn more about the possible effects that the government shutdown can have on reverse mortgages, click on the image above

 

 

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