MBA: Prolonged Federal Shutdown Will Hurt Housing Market
The longer the government shutdown continues the more disruptive it will be for the mortgage market and borrowers, according to the Mortgage Bankers Association.
MBA president and chief executive David Stevens noted that lenders are facing loan processing delays because so many government employees have been furloughed due to the shutdown.
“Lenders processing loans that need tax transcripts, Social Security number verification, or FHA home loans face longer delays and reduced functionality from HUD, IRS, and the Social Security Administration,” Stevens said.
Mortgage transactions are time sensitive, he pointed out, and processing issues can delay closings and lead to “confusion and fear” among borrowers.
For these reasons, the MBA is calling on congressional leaders to resolve their budget fight soon.
The longer the shutdown continues, “the greater impact it will have on borrowers, the housing market and the national economy,” Stevens said.