Government Shutdown: True or False?
Hello it’s Monica Diaz! Welcome to my video blog! By now most of you not living on a deserted island have heard all you wanted to hear about this Government shutdown nonsense.
A lot of my peers have also produced some informative videos detailing how it may effect certain segments of the population.
The Monica Diaz Team wants to put all the rumors to rest by playing a True or False game with you, our viewers. We want you to be FULLY INFORMED of what the shutdown means and how it may or may not affect you as you attempt to negotiate/transact through the situation.
True or False: The IRS is playing a negative role in this escapade.
TRUE. Any mortgage backed by Fannie Mae or Freddie Mac must verify a borrower’s income with the IRS. Because the IRS agents are shutdown, verification paperwork isn’t being processed.
True or False: FHA lenders are also shut down.
FALSE. FHA lenders have the authority to make their own underwriting decisions and don’t need the IRS to verify incomes.
True or False: Borrowers who are already far along in the underwriting process are unlikely to be affected.
TRUE. There are skeleton staffs working at the housing administration level and they are appropriating based on a first in, first out model. You may experience a slight delay but for the most part your loan should still close within previously established time frames.
True or False: Applying for a Re-Fi right now is good strategy!
FALSE. Anyone applying for a Re-Fi or a New Mortgage is looking at anywhere from 45-90 day wait times (and perhaps longer depending on when the shutdown ends).
True or False: You should steer clear of Wells Fargo and other TBTF Banks until the shutdown ends!
TRUE. Wells Fargo has already gone on record and stated "new applications will not get completed until after the shutdown ends and borrowers income claims can be officially verified."
True or False: The Government Shutdown will not affect the Housing market very much, or at all.
FALSE. Honestly, if the Shutdown lasts more than a few weeks or even longer, home sales could come to a crashing halt which could significantly weaken our overall economy.
With that said, I implore all of us working inside the Real Estate business to take an active role in being a valuable communicator to your clients as we try and navigate these turbulent times. Be reassuring as much as possible to keep emotions calm asking for patience and logic and reason to rule your decision making.
Your clients will thank you for it long afterwards.
As always, if you ever know of a friend, co-worker, relative or even a member of your social communities like Facebook, interested in buying or selling property, connect with me today!
AND REMEMBER-"MONICA MAKES IT HAPPEN"!!!
