#Shutdown & Home Mortgage Applications

2018 Washington Government Shutdown Home MortgagesMany home buyers and home sellers may start to wonder how this government shut down impacts home mortgage applications. Whether it’s your mortgage application or the mortgage application of the buyer of your home, it’s worthing talking with your realtor and the borrower’s lender to understand the impacts. This is the latest from the National Association of Realtors. I recall in 2013, the shutdown caused some momentary delays. But the hope is most lending institutions will be able to quickly spring into contingency mode to adopt work arounds for any missing IRS or SSA documents.

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Internal Revenue Service

The IRS is closed and has suspended the processing of all forms, including requests for tax return transcripts (Form 4506T). While FHA and VA do not require these transcripts, they are required by many lenders for many kinds of loans, including FHA and VA, so delays can be expected if the shutdown is protracted. We have received indications that many loan originators are adopting revised policies during the shutdown, such as allowing for processing and closings with income verification to follow, as long as the borrower has signed a Form 4506T requesting IRS tax transcripts. On loans requiring a Form 4506T Fannie Mae and Freddie Mac are expected to adopt relaxed provisions allowing closings but subject to tax transcript verification before the GSE’s purchase the loans.

Social Security Administration

The Social Security Administration is closed and has suspended most customer service functions. According to the SSA Contingency Plan, verifying Social Security numbers through the Consent Based SSN Verification Service will also be suspended during the shutdown, a further complication for mortgage processing. As with IRS income verification, policies vary among lenders, with many choosing to exercise forbearance during the shutdown period subject to subsequent verification. Fannie Mae and Freddie Mac are expected to adopt policies to allow for closing subject to subsequent verification and before GSE purchase of the loan.

Quick Hit: Buckingham Pond Skating Party!

FeaturePics-Ice-Skating-Sledging-Holland-070418-555190Join us for that magical time of year when we have a great big community party on the ice.

The Conservancy provides the Hot Chocolate. Mother Nature hopefully proves the ice and you all provide the fun.

Dress warm, bring skates (or just come in your boots!), and bring a lawn chair if you want a good spot to change into your skates.

If there is ice to skate on, the party will be held either 1/28 or 2/11.

A donation jar will be available. Donations will be used to support the work of the Conservancy to protect and enhance Buckingham Pond.

Here’s the Facebook Link to express interest!

Quick Hit: Ray Dalio on Inequality and Corporate Purpose

FeaturePics-Economy-065645-2297530This is remarkable. Two of the wealthiest American capitalists are sounding the alarm on inequality and corporate purpose. Says Dalio, “To prosper over time, every company must not only deliver financial purpose, but also Continue reading “Quick Hit: Ray Dalio on Inequality and Corporate Purpose”

Capital Region Ridesharing

FeaturePics-Sports-Car-Interior-074001-2310821It’s been a long time coming, but at last Albany has joined the ranks of other thriving metropolises with the arrival of Lyft and Uber. Curious about or intimidated by the service? We tried it out for you! Continue reading “Capital Region Ridesharing”