The government’s fiscal year runs from October 1-September 30, meaning that Congress’s duty to pass spending bills to fund the government must be passed by September 30 each year. This year, Congress did not come to an agreement to pass the funding bills by September 30 and effectively shut down the government starting October 1.
But how does this affect mortgage lending for an everyday citizen? Learn more below about how Wisconsin Mortgage Corporation (WMC) is working during the government shutdown to continue providing quality loans for our clients.
- Tax Transcripts. Tax transcripts are needed on most transactions as the verification of income for all borrowers. With the shutdown in place, the Internal Revenue Service (IRS) will not be issuing new forms to any lenders throughout the United States. Our Secondary Market Partners at WMC have already begun to generate options, and we will seek other ways to provide the necessary verifications required to replace tax transcript verification.
- USDA Rural Housing. This federal agency has been directly affected by the shut down and will not operate or at a very limited pace. At WMC, we are looking at all loans currently in progress, and at this point we do not expect any delays. This could change depending on the length of the government shutdown, but we will continue to communicate on individual transactions and take proactive steps in advance.
- HUD, FHA and VA Loans. At this point, these loans will continue to be processed as usual. WMC is a “Direct Delegated” lender for these products, meaning business can continue through our private in-house lender. We do not expect to have delays in these product areas, but again it could change if the shut down is extended for weeks.
Because this is a very fluid situation, Wisconsin Mortgage Corporation is operating hour-by-hour to stay ahead of changes and protect our Shorewest customers. Our loan officers and support staff at the Shorewest, REALTORS® Corporate Office are focused on completing the transactions we have and welcoming new customers. Above all, feel confident that Wisconsin Mortgage will help guide you through this unusual situation.
“We aim to provide quality home loans for all of our clients, which starts with providing the right information. If you have any questions about the government shut down and how it may affect your loan, please do not hesitate to contact us,” said John Inzeo, Vice President of Wisconsin Mortgage Corporation.
As always, WMC processes and underwrites our loans in-house. Every loan is funded by WMC at the closing table. Our system is designed to support purchase transactions. All of this ensures that Wisconsin Mortgage and Shorewest, REALTORS® can react quickly to expected changes coming from this government shut down.
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