Home Equity Conversion Mortgage insurance endorsements are being halted as a result of the partial U.S. government shutdown that began on Saturday, according to a notice sent by the Federal Housing Administration (FHA) on Wednesday morning.
Due to a lapse in appropriations, the shutdown entered its fifth day on Wednesday. Until further notice, the FHA Office of Single Family Housing and its mortgage insurance program will be operating with limited services, the FHA stated. While HECM payments to borrowers will continue during the shutdown, insurance endorsements will not be made for HECM or Title I loans, FHA stated. Additionally, HECM Collateral Risk Assessment issue assistance will not be available during the shutdown.
“If the appraisal was completed under the Interim Protocols, the appraisal and loan processes must continue under the Interim Protocol path,” the FHA notice states. “If the appraisal is subject to the Fully-Automated Protocols, it must follow those processes through endorsement.”
Customer service will remain available with limited staff assistance, while other services will not be available such as annual lender recertification, lender approval application approvals, and quality assurance processes for single-family loans.
View the full list of services that are available and unavailable via HUD’s Contingency Plan for Possible Lapse in Appropriations.
Written by Elizabeth Ecker