The government shutdown has affected new endorsements for Home Equity Conversion Mortgages, however, it has not stopped reverse mortgage originators from moving forward with business as pre-existing HECM loans are still available during the shutdown, according to Reverse Mortgage Daily.
“The shutdown has not affected me at this point,” said Mike Peerless, Reverse Mortgage Director at Holland Financial Services in Ormond Beach, Fla, according to RMD.
“If the shutdown is still in progress [by the time of my next closure] on January 18th, then I guess there will be a delay. I heard that the shutdown could last for months, and if that happens the results would not be good.”
There is still plenty of danger for reverse mortgage professionals should the shutdown continue. For the most part, brokers haven't experienced any hassles on the front end, according to the report. However, lenders are the folks that seem to be struggling with the shutdown the most.
"Continued dissension between the White House and Congress over financial appropriations related to border security has made the possible end of the current shutdown difficult to predict for both career politicians and political observers," according to RMD.
To learn more about the government shutdown's effect on the reverse mortgage industry and originators, click one the image above.