Who is impacted?  There are three big categories not impacted by the closure.  Social Security, Medicare and other so-called entitlements.

The second group entails functions "Necessary to protect life or property", law enforcement and the military, intelligence agencies and foreign embassies all will stay open.

About 40% of the nation's 2 million federal workers would be furloughed.  About 1.4 million active-duty military personnel must remain on the job but won't get paid until a new deal is signed into law. Active National Guard units also must continue to work.  Most civilian employees of the Defense Departments face furloughs.

Process Impact:


IRS Transcript and SSN Validation vendors are not able to resume business until the government is back on line.  For all FHA, VA and FNMA loans requiring transcripts, funding is not to occur until such time as these items are provided.

Employees Directly Affected By The Shut Down-

For borrowers employed by the federal government or other individuals whose employment is directly impacted by the shut down, the borrower must be back on the job as confirmed via Verification of Employment dated within 10 days of funding.

Because Federal requirements permit only essential staff to work during a Government shutdown, just over 2% of HUD's Office of Housing will be working.

*Loans may be endorsed by HUD or lenders approved for the Lender Insurance program.  Due to significantly reduced staff, loans endorsed by HUD may experience extended turn times.

*  The FHA Resource Center will be operational and lenders may continue to ask questions by phone or email.  The Resource Center can answer general questions.  However, questions that cannot be answered by Resource Center personnel or questions that are case specific may not be answered until the government re-opens.

*FHA Connection is fully functional

*Case number functions, including request for new case numbers

*CAIVR Database

*Total Scorecard

*HUD's website, including FAQs, mortgagee letter archives and handbooks

*FHA will collect MIP premiums (un-front and annual)

*HUD homes will continue to be listed for sale

*FHA will pay claims and servicers may convey properties

*HUD's National Servicing Center will continue to respond to phone calls


FHA will not perform the following functions:

*Review of test case loans

*DELRAP condominium project approvals and re-certifications

*Review and approval of lender applications for HUD approval (Lenders may submit on line application packages , but they will not be reviewed)

*Lender re-certifications

*Post Technical Endorsements Reviews (PETRs)

*QAD audits

*Processing of incoming mail

*FHA Connection password re-sets that require intervention by HUD staff


VA:  There is no interruption to any VA Portal, NOV or loan guaranty functions

USDA (Rural Housing):  USDA will not issue commitments, nor will they guaranty loans.