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The Government Shut Down and its Effect on Mortgage Business


As we head into the second week of the Government Shutdown, I wanted to pass along some information in regards to how this may or may not affect mortgage business.

All Loans: Before a loan closes, we are required to obtain a copy of the Federal Tax Return Transcripts that are on file with the IRS. We obtain these via a service provider that obtains them directly from the IRS. The IRS is not completing these requests at this time. Northwest Mortgage Alliance has made the business decision to close loans during this time period on a case by case basis if we are missing the transcript. Not all lenders are operating under this plan, so if you have a closing coming up in the next 2 weeks, I would check on that.

We are also required to verify a customer’s Social Security number when there is a discrepancy on the credit report. We obtain this verification via a service provider that obtains them from the Social Security Administration. The Social Security Administration is not completing these requests a this time. Northwest Mortgage Alliance has made the business decision to close loans during this time period on a case by case basis if we are missing the Social Security Verification. Not all lenders are operating under this plan, so if you have a closing coming up in the next 2 weeks, I would check on that

FHA: Direct Endorsed Lenders (Northwest Mortgage Alliance is one) are able to conduct business as usual. The only issue we are experiencing at this point is when we are submit Condo packages for approval. The typical time period for a condo approval is about 4-6 weeks and FHA is currently now working on these during the shutdown.

VA: The only real issue we are seeing is in the process of obtaining a Veterans Certificate of Eligibility. We are typically able to obtain this electronically for the Veteran. In some cases, the VA has to conduct research. In these case, we are experiencing longer than expected delays. If you have a VA transaction going at this point, check with the Lender to confirm they have the certificate of eligibility.

USDA: The USDA is not issuing any commitments during the shutdown.

Flood Insurance: FEMA is not issuing Flood Insurance at this time.

– Stefanie Cummings, Mortgage Loan Originator

If you have questions, please contact us. We look

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How to Close on Time – Assets

September 30, 2013 by Mark Aalto MLO #116708

 

1 Votes


Finance

Finance (Photo credit: Tax Credits)

This week we’re going to focus on the role that assets play with transactions.  When it comes to funds to close, improper documentation and lack of documentation are the biggest reasons mortgages close late.

Team Aalto assets tips:

  1. Fully document all deposits.  These days lenders need to know exactly where your deposits came from.  If it wasn’t from an electronic paycheck deposit, you’ll need to provide a complete paper trail to your lender.
  2. Provide all pages of bank statements and investment accounts.  Yes, even the blank pages.
  3. Request and deposit funds early.  It may take two to three weeks to get 401k funds so request them early.  If you are receiving a gift, get the funds and the documentation before you have an accepted offer.  In both cases, your Bank may not give you access to the funds right away so the earlier the funds are deposited the better.
  4. Stop transferring funds all over the place.  Lenders need to get an accurate snapshot of how much money you have to work with – when funds are transferred constantly it makes it really difficult to verify funds to close.
  5. We understand that finding and providing documentation isn’t the highlight of the day.  Our job is to get your loan closed on time – we all need to work together to make sure all needed items are submitted to underwriting as quickly as possible.

As is always the case, provide all documentation requested by your lender at the beginning of the process – that gives us plenty of time to review your documentation and catch any things that might delay your closing.