A partial government shutdown that began over the weekend remained in effect Monday, as the House had yet to act on a Senate-passed compromise bill that includes mortgage-related funding.
The departments of Housing and Urban Development and Treasury among the agencies affected. So too is the National Flood Insurance Program.
"Most HUD staff are prohibited from working; however, some predetermined functions will continue," that department said in a statement posted on its website, noting that it will be operating with the same
Limits on FHA and the CDFI fund
Insurance endorsements for the Federal Housing Administration's core mortgage program will be available. Endorsements for reverse mortgages, Title I program and HUD employee loans will be unavailable. Some functions supporting condo loans won't be available.
The Treasury Department's Community Development Federal Institutions fund also released a statement indicating its "staff and services" would be limited by the shutdown.
Residential mortgages are the largest loan type among CDFI-certified banks at a little over 29% of their loans on average, according to a recent Kroll Bond Ratings Agency analysis of Federal Financial Institutions Examination Council lending data.
Stakes for housing and ICE
If the Senate's bill passes, HUD will have a $77.3 billion budget and be funded through September, when the government's fiscal year ends, Brittany Webb, senior policy and research associate at the National Housing Conference, wrote in a report on Sunday.
That budget marks a 7% increase over the previous year, based on calculations from the National Low Income Housing Coalition.
Funds for Immigration and Customs Enforcement activity within the Department of Homeland Security have been the most contentious budget issue, with Democrats calling for curbs on its activity and the Senate bill doling out limited allocations until reforms can be negotiated.
Lapsed NFIP funding
Without the passage of a new bill, the National Flood Insurance Program was officially only funded through Jan. 30, so the industry is facing
"This disruption could lead to significant uncertainty in the housing market and may result in the cancellation of sales," the National Association of Home Builders said in a statement posted on its website, flagging a development that could aggravate
"Although Congress has reauthorized the NFIP retroactively following most prior lapses in authorization that have occurred, there is no guarantee that it will do so in this instance," the NAHB said.
Credit union responses
The National Credit Union Administration reported Sunday that it will remain open. However, it noted that the partial shutdown "could affect
Credit union offices on federal property also could be impacted, the NCUA noted.
Accounts will remain federally insured. Individual credit unions may make determinations related to whether they will do things like proceed with FHA loan closings or postpone them due to the partial shutdown.
A recent America's Credit Unions survey indicated that the majority of CUs offered customers impacted by the 2025 shutdown relief with 90% offering payment deferrals, 78% making "new or modified loan programs" available and 68% waiving fees or penalties.
