Government Shutdown Means What for Servicers?

We got us a government shutdown. Or maybe not. The story (to say the least) is fluid, but if Uncle Sam has to pull the plug on non-essential workers and programs what will become of FHA, whose money comes directly from the U.S. budget? (See our story on the National Mortgage News website to get the answer to that question by visiting: www.nationalmortgagenews.com) But there are other considerations in a government shutdown too – especially for mortgage servicers. If Uncle closes for business that means ALL (the operative word here being "all") our nation's federal parks will close, wiping out millions of dollars in tourist income. For school age children 'spring break' has started. How would you like to be a small business owner (hotel/motel/restaurant/t-shirt vendor) near the Grand Canyon and suddenly the tourists don't show up? Keep in mind that many smaller business owners have mortgages and depend on tourist income. Can you spell L-O-A-N M-O-D-I-F-C-A-T-I-O-N? The irony here is that many smaller business owners might skew to the GOP and are members of their local Chamber of Commerce. They also might be supporters of the Tea Party faction of the GOP, which is pushing the nation into a shutdown. Or is it those tax-and-spend liberals on the other side of the aisle? It's great fodder for the news "personalities" at Fox and the cable TV and op-ed blabber mouths, but there are real financial consequences here for mortgage servicers – but they may not realize it. Until now.