Government shutdown

The government shutdown could affect mortgage origination credit quality as lenders miss some red flags normally found using data that is not currently available, according to Moody's.

The agency wants mortgage servicers to extend special forbearance plans to those affected by the partial government shutdown and evaluate borrowers for loss-mitigation options.

The government shutdown is not just affecting federal agency employees' ability to make their mortgage or rent payments, it could take them out of the home buying market, Zillow said.

As the government shutdown enters its third week, mortgage servicers are activating the response plans they normally use during hurricanes and wildfires to assist federal workers who may have trouble paying their mortgages.

Borrowers and financial institutions may be feeling the strain from reduced operations at the FHA and IRS, which has suspended the release of certain income documentation during the budget impasse.

Despite mortgage rates continuing their two month downslide, applications decreased 9.8% from two weeks ago due to market uncertainty, according to the Mortgage Bankers Association.

Fannie Mae's overall single-family serious delinquency rate dropped another notch in November, according to its most recent report, but the current government shutdown raises questions about whether that trend will continue.

The announcement rescinded the agency's earlier guidance issued to industry partners to suspend sales operations as a result of the current lapse in funding from Congress.

It's not clear exactly what might pull investor sentiment and 10-year Treasury yields, which rates for the 30-year mortgage are benchmarked to, off the current lows.

Lawmakers and industry groups were caught off guard when FEMA said it wouldn't issue flood insurance policies during the government shutdown, despite an extension passed last week.

Top U.S. financial regulators assured Treasury Secretary Steven Mnuchin during a hastily organized call they are seeing nothing out of the ordinary in markets.

From HUD to the Treasury, here's a look at the nine federal government agencies that are affected by the third federal government shutdown of 2018.

Here's a look at what happens at five federal agencies that support the mortgage industry during a government shutdown.