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What the shutdown means for the mortgage market

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Mortgage Professional America | 03 Oct 2013, 06:00 AM Agree 0
The government shutdown doesn't seem to be close to resolution. What does it mean for the mortgage market, and for your business?
  • Trevor C. Cooley | | 03 Oct 2013, 09:08 AM Agree 0
    The biggest problem is USDA Rural Housing mortgages. Their offices are completely shut down and have halted all closings. Even when the goverment decides to figure it out, this will just put USDA behind on their workload. If you've dealt with them in the past, they are not known for their swiftness even when they are able to work.
  • Roger M. Young | | 03 Oct 2013, 09:19 AM Agree 0
    It's not just FHA. I have 4 investors that I sell conventional and government mortgages to that require IRS validations on 100% of files before a file is allowed to close.
  • Chris in Austin, Texas | | 03 Oct 2013, 09:21 AM Agree 0
    NO IRS Employees to verify form 4506T that confirms tax returns
    NO Social Security Employees to verify Social Security numbers
    Mortgage Brokers are OUT OF BUSINESS!!!!
  • Dominick Sammarone | | 03 Oct 2013, 09:25 AM Agree 0
    OMG! It's Not a shutdown! It's a spending freeze. Washington ran out of money. The taxpayers are broke!

    I think both sides of the isle are trying to survive and are just "FED-UP"
    We need to put our own house in order first. The house of representatives second. Charity starts at home.

    America has been pushed to the brink and can't take much more financial stress without cracking. The middle class is working hard to keep the upper class at the country club and the lower class fed and healthy. We're all tired and broken. The engine is going to blow and it won't be pretty. Cut the reckless spending and stupid campaign speeches. You won already, go to work! #FedUp
  • mag | | 03 Oct 2013, 09:29 AM Agree 0
    Most lenders underwrite their own FHA files, so that should not be a huge deal. The IRS, on the other hand, could be a real buzkill.
  • Russ Stewart | | 03 Oct 2013, 09:47 AM Agree 0
    gotta love the "The middle class is working hard to keep the upper class at the country club and the lower class fed and healthy. "

    Kudos to Dominick!
  • Jim in CT with little sympathy | | 03 Oct 2013, 10:07 AM Agree 0
    GSEs need to step up and drop the requirements for tax transcripts or they're complicit in this cluster.
    This is what happens when you let Government make itself essential to normal daily activity.
  • Kenenth Brown | | 03 Oct 2013, 10:28 AM Agree 0
    Typical Obama tactics (my way or the highway) have led us to this standoff and partial govt shutdown. The Democrats offer to give up nothing, and want the Republicans to cave in and give up everything. Obama and the Democrats slant the story to the media to try their best to make the Republicans look as bad as possible. Which is more important to the Democrats - getting govt workers back on the job or stuffing Obamacare down the throats of Americans where the majority does not even want it? I suggest a complete delay of implementation of Obamacare (since Obama has selectively delayed parts of it already) and let the American public vote on Obamacare on the 2014 ballot! The govt obviously does not have the money to pay for Obamacare anyway! Can we have a politician just tell the entire story truthfully for once?
  • Kevin | | 03 Oct 2013, 12:15 PM Agree 0
    @Kenenth Brown: The average people are very tired of the Republican propaganda that you are regurgitating in this forum (and probably on others as well). The majority of the American people DO want Obamacare (as they want Social Security and Medicare) and they are sick and tired of you and your kind. Not one single word that you are saying can be supported with credible resources. You need to stop spoiling everybody else's normal comments and discussion here and go back to Troll Land and stay there. Dr Goebbels and his comrades would salute you and your troll buddies if they were alive today. Obamacare was even approved by the very conservative Supreme Court. It was a major election issue. Obama won the reelection, the people spoke, you lost, get over it. Either do something constructive or crawl back to the hole you came from and stay there. Thank you.
  • Gina Botelho | | 03 Oct 2013, 12:26 PM Agree 0
    I think it depends on what perspective you are looking at this from as to who you blame about this whole issue. The truth is all of them should be fired! They can't accomplish their jobs and have proven this by our current situation. Lets just all wish as a collective group that they get it together as fast as possible so that our credibility as a country does not suffer any more than it already has.....THEY SHOULD BE EMBARRASSED !!!!ALL OF THEM!!!!
  • Ken | | 03 Oct 2013, 01:24 PM Agree 0
    Food for thought - Do you believe in socailism or capitalism? Do you want government handouts or can you stand on your own 2 feet to support yourself? Gina is correct in that the polliticians all need to get it together quickly...
  • Shauna | | 03 Oct 2013, 04:29 PM Agree 0
    @Kenenth Brown - The issue I have is this issue has ALREADY been NEGOTIATED! If you do not like a LAW, you introduce NEW bills to change it. You do not hold the passing of a TOTALLY unrelated bill hostage. Besides, the Tea Party version of "negotiating" is saying cancel/delay the WHOLE THING. I am not an English major but I doubt that would fall under the definition of negotiating???
  • Scott C Norris | | 03 Oct 2013, 04:39 PM Agree 0
    That is not a fair statement of the performance of USDA offices around the country, Mr. Cooley. I work with one whose performance is exemplary - better than most conventional lenders.
  • J Harmon | | 03 Oct 2013, 08:53 PM Agree 0
    Mortgage Brokers Out of Business. That about sums it up. Who in their right mind can deal with all this? Constant turmoil from DC, constant changes, Education every year, now new finger prints to renew your license. Fees from NMLS if you use a credit card to pay on line, Mortgage Call Reports, Webinars, Seminars, Continuing Ed, Fees to the State, Fees to NMLS, Fees to work. Who can deal with this anymore? You can't just get up and go to work because when you take a phone call you don't know what the Law Du Jour is.
    Wonder how much we are saving each day by the Government being Shut Down? Maybe we will be out of debt if it keeps up. Cracked me up when a Government worker was on the Radio pleading.. she couldn't make her mortgage payment and just wanted to go back to work. Yes, honey, I feel your pain. I can't go back to work because government stops you every time you take a phone call. I never thought I'd finally do it. God knows I've threatened a lot since 2007. But this time I am done. Nobody will care but I'm shutting the doors to my little 26 years in business one man shop. I can't take it anymore. You work your butt off and then can't get some stupid Tax Return verified so you can close. NAR should start to get really pissed pretty soon. Their realtors won't be able to close their deals. Bad enough dealing with the HOMEPATH BS. I'm on to a better life - Somewhere Over the Rainbow. Maybe I'll make shell jewelry for tourists at Milo's on Guana Key, Or BushWackers on Abaco. Anywhere other than here.
  • Frank Martorano | | 04 Oct 2013, 03:30 AM Agree 0
    This is for J Harmon. One way to avoid allot of the impediments you mention is to join a federally chartered bank. You can contact me on Linked In for more information.
  • J Harmon | | 04 Oct 2013, 09:29 AM Agree 0
    So what happened to FREEDOM in America? To work where you want to work not where you are FORCED to work. Do you know how much money, time and education, blood, sweat and tears I have put into my little Business to be told - go work for a bank? I sincerely appreciate your offer. I'm just making the point that we ARE NOT FREE to have the Profession we were called to do. You just don't DO THIS in America! I'm not a sheep I'm a leader.
  • Kevin | | 04 Oct 2013, 06:44 PM Agree 0
    Kenneth is a troll, normal people should worry about people like Kenneth. Please, @J Harmon you cannot be serious. Wonder why how much we save when the government is shut down. You call yourself a professional? How can such a statement come out of your mouth? Let me tell you a secret. We 'save' peanuts. Probably it costs us. Because vital government services are delayed that are necessary for everybody's life, his/her business. Just look at this: FHA Loans cannot be processed, USDA Loans totally halted, many business related areas are done. Is this a good thing for your business? Put it in perspective. Yet, we blow 1 Billion dollars in a WEEK in Afghanistan. You wanna start saving? Hey, that is your prime source of saving. Get the troops out of there. There is a lot of nation building to be done here at home. You complain about your 'freedom' being taken away? Really? Have you not noticed in the past 12 years that your freedom WAS taken away 12 years ago? How come you did not complain then? And you are complaining now? To stop your freedom being taken away, do one thing, please. Call your Congressman to repeal the Patriot Act. Everything that has been done to Americans in the past 12 years happened because the Patriot Act let them happen. Not Obamacare. Obamacare is actually a good thing, do your due diligence before you criticize something. And many Americans should join the movement to repeal the Patriot Act, stop the war on drugs, tell the government to stop making 20% of government documents secret, and stop imprisoning whistle-blowers. Should I continue? I think you get the picture. Please, Americans, we must wake up and do something. Complaining will not help any more.
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