There is no doubt about it; the government shutdown on Tuesday has been a major topic of discussion on social media and the news. Although most reports indicate that the impact of a shutdown should be minimally disruptive to the American people and our economy as long as it doesn’t last too long, there are some immediate affects that are being felt by the real estate industry and the mortgage industry in particular.
Ever since the mortgage fiasco of several years ago, lenders are a LOT more careful to confirm details on loan applications, including verifying the Social Security numbers of applicants as well as tax returns. The Social Security Administration and Internal Revenue Service are working at reduced capacity and are concentrating primarily on the vital functions they each perform. Verifying Social Security numbers and tax returns are NOT considered vital functions, meaning that loan applications that need this information confirmed will likely not be processed at this time and buyers will have to wait until the offices are operational again to continue the mortgage process.
The best bet for folks who might be impacted by these issues is to contact their mortgage professionals to find out if they are affected.