There is still plenty of uncertainty of how to move forward in the HECM market, even after the most recent government shutdown came to an end. As the shutdown took place, professionals in the reverse mortgage sector got a glimpse at what could happen should February 8 arrive with another potential shutdown.
"...all HECM endorsements would come to a halt for the duration of the shutdown, and HUD and FHA officials warned that substantially reduced staffing levels could create delays with the ongoing functions that survive," according to Reverse Mortgage Daily.
"Of the 7,797 HUD employees on staff, 289 would have been allowed to report to work, with the remaining 954 barred from entering their offices or performing any government work from their homes or other locations. HUD did note that a certain portion of those 954 employees could be called into work 'on an intermittent basis,' but their work would be limited to operations deemed essential and ongoing."
While the shutdown would put added stress on the HUD on the reverse mortgage side, Ginnie Mae still stayed relatively strong. The report claims that there were reductions in staffing, though, none that really impacted operations.
For more on the impact of the most recent government shutdown and the potential impact of a longer one in the future, click on the image above.