Effects of a Potential Government Shutdown on Mortgage Lending

Although Senators reached a deal to fund the government through February 8th, political observers note the possibility of a future shutdown, leading Asset Securitization Report to compile a list of ways mortgage lending could be affected by a government shutdown. The list included limitations on Title 1 loans from Department of Housing and Urban Development, a halt to 4506-T requests at the IRS (which serves as authorization in the loan file), and the discontinuation of all rural housing loans and guarantees through the U.S. Department of Agriculture.

That said, many entities essential for the mortgage market would continue functioning in their normal capacity. These include Fannie Mae, Freddie Mac, Ginnie Mae, and Department of Veterans Affairs. 

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