Mortgage Bankers Want End to Government Shutdown

The Mortgage Bankers Association (MBA) is quite displeased with the first government shutdown in almost 20 years. While everyone is upset, the MBA implores Congress to end the shutdown because of its potential damaging effects on the nation’s housing market, which has been enjoying an impressive rebound.

The most serious possible damage could include the following dangers.

  • Lenders may be unable to verify income from the IRS.
  • Mortgage bankers and borrowers could face deal-breaking delays in FHA loan guarantee approvals.
  • Mortgage lenders needing verifications from the Social Security Administration may not receive them during rate      lock periods.
  • Multi-family home lenders awaiting FHA financing may be blocked, facing potential interest rate increases.

The majority of US mortgage bankers fear that all the wonderful gains the housing market has made in 2013 could be brought to a grinding–and dangerous–halt. Until there is a restart date, even furloughed government employees who are prospective mortgage borrowers may be unable to close their transactions.

The Zwahlen Team, Barry and Brenda Zwahlen, are trusted real estate experts in the Danville and surrounding areas’ markets. If you want to buy or sell a home in Danville or the surrounding areas of Contra Costa County, contact The Zwahlen Team to ensure a successful, stress-free purchase or sale. Like all of their clients, you’ll be happy you spoke with them.