Lawmakers have until midnight tomorrow to pass a continuing resolution that keeps the government open until a longer-term spending plan can be approved. If a shutdown occurs, it will not impact your clients’ ability to receive monthly payments or access funds from their lines of credit.
However, FHA will stop insuring new HECM reverse mortgages until the government reopens. Lenders can still close loans with the understanding that they won’t be insured until a later date. In general, FHA systems, such as FHA Connection and CHUMS, will be operational; however, actions that require intervention by FHA personnel will either be delayed or suspended.
NRMLA members are encouraged to review the Federal Housing Administration’s contingency plan that explains its roles and responsibilities during a government shutdown.