How The Shutdown Will Affect Your Government Mortgage
The government shutdown in the case of the DACA ‘Dreamers’ has led to a multitude of problems, despite the fact that the bill to end the shutdown temporarily for 17 days has been signed.
If you asked for a mortgage from a government-affiliated institution, then you might have to wait in long lines for the paperwork to be entirely processed. Mortgaging is one process which has not been computerized to the degree where it can be perfectly managed without human interaction, and with workers not allowed to settle in the offices and work the piling mortgage papers will have no place to turn to.
How Will It Impact You?
It depends mostly on your time of submission and the type of mortgage you have asked for, according to the Federal Housing Authority. During the freeze, some departments worked normally while others were on a shutdown and no mortgage papers were processed and forwarded to concerned authorities.
It will certainly be a good decision to go to your respective mortgage office and check up on the status of your documents, and maybe even withdraw them until the time the official working days settle down.
Does It Impact the Rate?
The mortgage that a property qualifies for depends on the condition of the property that is determined by the inspecting authorities. The only real impact of the shutdown, however, was faced by the stock market that started plummeting as soon as it started progressing.
The impact can be explained by the fact that the dealing on the stock market is independent of the day of the week that it is. The mortgage offices, however, do depend on the day because their opening hours are limited accordingly. Considering that the shutdown lasted mainly for one weekend, the damage should be fairly easy for the authorities to manage.
What Should Your Level of Concern Be?
If you were part of that unfortunate bunch that was expecting their mortgage payment soon, then you might have to wait a bit more. The release of the payment from the USDA depends on the functioning of all the authorities, and there might be some delays caused by this sudden shutdown of offices.
That does not mean that you should lose your faith in the ability of the state to grant you your rightful financing; it just means that you might have to wait longer. Your amount of mortgage will likely take no bullet from the fiasco.
What Is to Come?
For now, mortgage lenders and receivers should both rest easy because, after the restoration of the pace of the offices, the speed of processing and financial advisory services will be back in the flow. But there is one underlying problem for the near future.
The House of Representatives and the Senate was able to extend official working days to a modest deadline of 8th of February only, which means that ahead of that the offices might become unapproachable. This might make application for a mortgage a lot riskier without a proper government notice.