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…
Be Sure YOU are Registered to Vote!
By Virginia REALTORS® - September 28, 2023
Every year in Virginia is an election year, and every year thousands of Virginia REALTORS® cast their ballot to elect and re-elect REALTOR® Champions who will make decisions… Read More
Your Guide to Election Season & Absentee Voting
By Virginia REALTORS® - September 8, 2023
As a Virginia REALTOR®, you see the impact that lawmakers have on our communities daily! Whether it’s local sign ordinances, business and income taxes, business model regulation, or… Read More
Sometimes When a REALTOR® Wins, REALTORS® win!
By Virginia REALTORS® - August 31, 2023
As the Nation keeps a watchful eye on November here in Virginia, there is one final candidate to highlight from the 2023 Primary Elections. This is a candidate… Read More