While the Federal Housing Administration cannot insure new Home Equity Conversion Mortgages during the government shutdown, existing HECM borrowers whose loans are being serviced by FHA continue to receive payments, according to FHA Info #18-52.
Other servicing, claims, and asset management business processes available during the shutdown, include assignment claims filing; conveyance of properties; and servicing of HUD Secretary-held notes and mortgages.
Because it will be operating with limited staff, FHA emphasized in FHA Info #18-52 that wait times for assistance will be longer than usual.
Mortgagees can also access FHA Connection and obtain new case numbers, although with limited capability for actions that require FHA staff intervention. Other available technology systems include the Loan Review System (LRS); Credit Alert Verification Reporting System (although FHA says it may not be able to ensure that the information contained in the system is up-to-date); Electronic Appraisal Delivery (EAD) portal (available for existing lender users only); and Home Equity Reverse Mortgage Information Technology (HERMIT).
“We have experienced very little if any impact from the government shutdown. It is business as usual,” said Ellen Skaggs, CRMP, of New American Funding, based in Tustin, CA. “We can access FHA Connection and get new case numbers quickly. The only area that has had delays is with obtaining transcripts for tax returns, but this is only required on a limited amount of our customers.”
NRMLA staff will continue to monitor the situation in Washington, DC and alert members of any important changes when they occur. Questions can be submitted to Darryl Hicks, vice president, Communications, at email@example.com.