Implications of possible Government shutdown on loan processing

I would like to update you on the possible Implications of Government Shutdown.

While everyone ise still hopeful that a shutdown will be avoided (or another continuing resolution passed), it is unlikely that there will be any decision until the last minute. 

 Below is the latest information we have on the implications at the housing agencies.  However, no final decisions have apparently been made.  

 IRS Tax Transcripts

 We have been advised that if the IRS is on furlough, you will not be able to obtain tax transcripts. Tax Transcripts are required in order to verify the information provided by the buyer.  Final loan approvals will be delayed until the transcripts can be received.


According to informaiton provided by FHA, FHA Connection will be operational to issue case numbers.  This should avoid a delay in ordering appraisals.  However CAIVRS’ checks or obtain insurance endorsements (including lender insurance) will not be possible.  Without CAIVRS’s clearance, a loan can not obtain final loan approval.  


 USDA has advised us that lenders will be able to close loans for which they had already received a commitment.   However, lenders will not be able to get the Loan Note Guarantees for them until the shutdown is over.

During the shutdown, USDA will not issue any new commitments or Loan Note Guarantees for closed loans.  Unlike FHA, USDA will not operate GUS, its automated system, during any shutdown.


VA has indicated that they will continue business as usual during the shutdown.  

Of course, we all hope that the shutdown does not take place so that there is no interruption to the processing and closing of any loan.

———————————————————————————————————————-   Keywords: Government shutdown, FHA loans during shutdown, VA loans during shutdown, USDA loans during shutdown, FHA loans San Diego, VA loans San Diego, USDA loans San Diego, 


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