Breaking News: Preparing for Possible Partial Shutdown of Federal Government
December 21, 2018
(via the National Association of REALTORS®)
Programs important to real estate will be affected in the event of a partial federal government shutdown at midnight tonight if lawmakers fail to pass short-term budget legislation.
NAR is in regular communication with congressional leaders and the White House and is working with other organizations to ensure lawmakers are aware of the importance of keeping programs critical to communities operating without interruption.
There are three areas of concern for your business: 1) the availability of federal flood insurance under the National Flood Insurance Program, 2) delays in processing of FHA-backed mortgages, and 3) slower response times by IRS offices for tax information needed for real estate transactions.
Flood insurance
NFIP’s authority to sell flood insurance policies expires at midnight tonight. Should the program lapse, NFIP will not be able to sell or renew policies. Existing NFIP policies will remain in effect until their expiration date.
Details and helpful links.
FHA programs
Under a shutdown, FHA will furlough non-essential employees. Delays are possible in loan processing and approval. Mortgages backed by secondary mortgage market companies Fannie Mae and Freddie Mac are not affected, nor are mortgages backed by the U.S. Department of Veterans Affairs.
Tax information
To the extent taxpayer information from the IRS is needed, transactions can face delays as IRS offices, subject to furloughs of non-essential employees, take longer to reply to requests.
You might also like…
Why We’re Lucky to Have RPAC
By Maura Pratt - March 17, 2023
Happy St. Patrick’s Day! It’s mid-March, and that means we are sham-rocking and rolling through another year of critical elections in the commonwealth. With all 140 seats in… Read More
Governor Invites Virginia REALTORS® to Participate in Bill Signing
By Virginia REALTORS® - March 9, 2023
On March 3rd, Governor Glenn Youngkin signed a universal licensure bill into law that will make it easier for individuals who require a license through DPOR to work… Read More
2023 General Assembly Halftime Report
By Maura Pratt - February 8, 2023
REALTOR® champions and Government Affairs fans, it is officially halftime. Well, crossover that is! Crossover is the time during the General Assembly Session where all House Bills make… Read More