How the Shutdown Affects the Mortgage Industry

Starkey LogoAccording to industry officials, the mortgage industry isn’t likely to face drastic, immediate repercussions because of the government shutdown. However, if the shutdown were to last longer than two weeks, the industry can expect to see more of an impact.

The vast majority of home loans are processed through Fannie Mae or Freddie Mac, both of which are federally supported, but neither company is diminished by the shutdown. The Federal Housing Administration (FHA), however, is a government agency and while still processing loans, they are working with a substantially reduced staff, which could lead to delays.

The biggest shutdown hiccup for North Carolina mortgages is the IRS, which isn’t currently issuing either tax transcripts or Form 4506-T, a form most lenders use to verify a borrower’s income. This isn’t really an issue for homes closing in the next week or two, as those forms have likely already been ordered. But, should the shutdown last longer than two weeks, home buyers may begin to see the real and lasting effects.

Generally speaking, it’s business as usual for lending companies. Just because the government has shut down doesn’t mean your loan has to. North Carolina home loans continue to be processed, and at Starkey Mortgage (WR Starkey Mortgage, LLP NMLSR #2146), we are continuing to submit paperwork on the borrower’s behalf for standard loans. We do not expect a short government shutdown to have lasting effects on the housing market.

At Starkey Mortgage, we provide in-house processing and underwriting, and pride ourselves on timely closings and competitive rates. Starkey exercises controlled growth and works closely with home buyers and builders to give them an assured experience.

For more information on Starkey’s East Region Builder Services Division, please contact North Carolina’s senior vice president and regional manager, Debra Watt at, 704-246-0132 or by visiting

Equal Housing Lender. 10800 Sikes Place, Suite 110, Charlotte, NC 28277. Branch NMLSR #93518, Branch License #L-112550-102, SC License #MLB-93518. Phone: 704.849.2125.

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