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THE SHUTDOWN WILL SLOWLY REDUCE OUR WEATHER PREPAREDNESS

October 8, 2013 by  

TS-EX- SHUTDOWN WILL SLOWLY REDUCE OUR WEATS-EX-R PREPAREDNESS, From the National Association of Home Builders:

With Congress and the White House in a funding stalemate, it is unclear how long the government shutdown will remain in effect. Even a short closure has the potential to affect many of our members.

The U.S. Department of Housing and Urban Development (HUD) has published a Fiscal 2013 Contingency Plan that details which of its programs and activities will be running while the federal government is shut down. Only legally excepted activities (those deemed to preserve life and property) are permitted to continue to operate during a shutdown. HUD offices closed to the general public at midnight on Monday, Sept. 30.

Below is a brief summary of how the shutdown affects key programs at HUD and other federal agencies that are of interest to NAHB members.

HUD

Office of Single Family Housing

The Office of Single Family Housing will endorse new loans under current multi-year appropriation authority which allows HUD to carry forward unused commitment authority from FY 2013. New loans will continue to be endorsed as long as FHA does not run out of commitment authority; however, there may be some delays in processing or closing FHA-insured loans.

Total appropriated commitment authority for FHA single family programs for FY 2013 was $400 billion (which HUD estimates can insure 1.2 million mortgages). HUD was not able to tell us prior to the shutdown how much of this commitment authority is available to cover loans during the shutdown until a continuing resolution or new commitment authority is authorized.

·Minimum operations necessary to support FHA’s existing portfolio will include keeping open the FHA Call Center and the National Servicing Center’s Call Center; servicing Secretary-held notes and mortgages; and continuing the REO disposition process.

·The decision to close an FHA loan will be decided by each individual lender.

·Lenders with Lender Insurance (LI) approval may continue to insure loans during the shutdown as long as sufficient commitment authority remains.

·The FHA TOTAL Scorecard will be available to lenders. Lenders can close loans.
Office of Multifamily Housing

FHA multifamily mortgage insurance programs:

Closings on projects with firm commitments that have a scheduled closing during the shutdown period may go forward.

Closings on final endorsements that have critical external deadlines may go forward.

During the first 10 business days:
MAP lenders servicing construction loans may, at their and the owner’s and general contractor’s risk, process interim construction draws. HUD will perform or contract for construction inspections on a post-review basis when the government re-opens. Initial and Final draws will not be processed or approved.

No change orders will be processed or approved.

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