As FM Lending Services continues to monitor the government shutdown, we would like to share some frequently asked questions about the impact on mortgage loans. Please contact your mortgage consultant with any questions or concerns about specific loan transactions.
Will the flood certification process be affected?
For the most part, the flood certification process will not be impacted. However if a situation requires additional research, such as mapping issues, the flood certification process will be impacted.
What about loans requiring social security number verification?
The Social Security Administration is now currently fulfilling requests for social security number verifications.
Will the IRS process tax transcript requests?
The IRS started to process transcript requests as of January 8th. However, the IRS will require an undetermined amount of time to return to normal service levels.
What is the impact on USDA loans?
USDA is unable to issue new commitments or guarantee closed loans. Effective December 15, 2018, USDA loans require tax transcripts. USDA loans cannot close without full tax transcripts for all adult household members.
How are government employees affected regarding employment verification?
If a borrower works at an agency that does not use a third-party verification resource, then employment verification cannot be completed. Loans cannot close without a 10-day verbal verification of employment (VVOE).
How are FHA, USDA & VA questions escalated?
Government agencies will have limited staff available to answer questions or correspondence. We always intend to answer questions in a timely manner; however, we may be delayed in responding while we wait for clarification from the government agency.
Contact your local mortgage consultant to discuss any financing questions.
This list is of frequently asked questions is only to be used as a guide and is not all-inclusive. Please contact your mortgage consultant for any questions related to specific loan transactions.
All first mortgage products are provided by Prosperity Home Mortgage, LLC dba FM Lending Sevices. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance. Licensed by the Delaware State Bank Commissioner. Also licensed in District of Columbia, Florida, Georgia, Maryland, Michigan, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.
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