HousingWire – Christina Mlynski
No. Wait, yes it can. The mortgage market took the time to dig through the Department of Housing and Urban Development’s contingency plan for dealing with a government shutdown last week. And industry professionals did a nice job reading the fine print, because the fine print changed over the weekend, creating some confusion as to whether HUD will be able to endorse single-family loans in the wake of a government shutdown. The simple answer: They can endorse single-family loans, but this is a major change from what was reported by HUD on Friday.
HousingWire, along with other news outlets, discovered on pg. 42 of the contingency plan — underneath frequently asked questions — that as apart of HUD’s shutdown plan, the Federal Housing Administration would be unable to endorse any single-family loans. Furthermore, the report said FHA staff will not be available to underwrite and approve new loans. However, all of this was reported Friday, and the contingency plan changed over the weekend. When I arrived at my desk Monday morning, I received various phone calls and emails informing me that HUD has updated its contingency plan from what was originally reported.
truth is FHA will be able to endorse single-family loans during the shutdown. In addition, a limited number of FHA staff will be available to underwrite and approve new loans.