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Blog

Tuesday, January 16, 2018

How a Government Shutdown Would Impact Realtors®

Posted by: Pete Kennedy on Tuesday, January 16, 2018 at 4:00:00 pm Comments (0)

Lawmakers in Washington D.C.  are under pressure to reach a spending deal — and have it signed by the president — by Friday, Jan. 19, at midnight.  The date marks the expiration of a short-term spending agreement passed during a similar deadline in late December 2017. 

If Congress can't reach a deal in time, the federal government will shut down, which would close many government offices, and prevent hundreds of thousands of federal employees from working. Essential  government operations, such as those related to safety and national security, would continue to operate, as would the U.S. Postal Service. 

How would a shutdown affect real estate and Realtors®?

According to a CNBC article posted last April, furloughs at the Internal Revenue Service and the Federal Housing Administration can create roadblocks for home buyers and sellers:

  • Mortgage applications could be delayed if the lender can't verify IRS data.
  • Some lenders may even need to verify your Social Security number.

The National Flood Insurance Program (NFIP) is also at risk, after being extended last month along with the rest of government spending in a  short-term continuing resolution. NAR has written letters to both the House and Senate urging long-term extension of the program, noting that when NFIP lapsed in 2010, "Each month cost more than 40,000 home sales."

What happened during the last shutdown?

After the government shutdown in 2013, from Oct. 1 to 16, the National Association of Realtors® (NAR) surveyed members about how they were affected. Seventy-one percent of respondents said their deals were not impacted at all, while those who experienced problems cited FHA/USDA closures as the biggest impediments. Note that NFIP was not affected in the 2013 shutdown.

 

 

 

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