How the Federal Government Shutdown Affects New HECM Loans.

FHA has stopped insuring new HECM loans and will resume when the government reopens. 

Applications can still be taken and underwritten. FHA insuring will happen at a later date.

Due to the recent Government shutdown, staffing is limited and the following services have been affected:

• No processing of tax transcripts (4506-T).

• Federal tax lien(s) verification and payoff/demand(s) cannot be obtained

• Credit Alert Verification Reporting System (CAIVRS) cannot be cleared or updated

• FHA Insurance Endorsements

• FEMA updates indicating disaster declarations.

• Case assignment corrections, cancellations, reinstatement requests and EAD updates are delayed due to limited staff availability.