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| The White House, 1600 Pennsylvania Avenue, Washington, DC |
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| David H. Stevens |
Washington, D.C. – David H. Stevens, President and
CEO of the Mortgage Bankers Association (MBA), issued the following statement
in reaction to the government shutdown and its affect on the housing market.
“The federal
government shutdown will have a growing impact on the housing market the longer
it continues. If this shutdown is temporary, the ones affected most will be out
of work federal employees. However the longer it goes, the greater impact it
will have on borrowers, the housing market and the national economy.
“Lenders processing loans that need tax transcripts, social
security number verification, or FHA home loans face longer delays and reduced
functionality from HUD, IRS, and the Social Security Administration.
Different loan
programs have different requirements, and these disruptions impact lenders in
different ways, leading to confusion and fear among borrowers about whether
they will be able to close on a home purchase or refinance. There are significant impacts on multifamily
lenders, as well. Rental housing
properties awaiting FHA financing cannot move forward.
“The furloughs can disrupt time-sensitive mortgage
transaction deals by interfering with borrower lock agreements and causing
interest rate disparities from the time of closing to the time the loan is
securitized.
“For these reasons there must be a resolution so that
borrowers and lenders are able to return to business as usual.”
For a complete
copy of the company’s news release, please contact:
Rob Van Raaphorst
(202) 557-2799
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