government shutdown

The Shutdown and housing

by
Green Escrow | buyer regrets

The effects are already being felt in Florida – and soon may spread to the rest of the country.

For starters, flood insurance renewals as administered by the National Flood Insurance Program are not being processed. New construction has stalled as environmental permits stack up. Federal loans for homebuyers are a no-go.

This, of course, is catastrophic for Florida where real estate is 24.1% of it’s gross domestic product – the largest percentage of any state.

If the shutdown extends for weeks into the future, analysts worry that it can have a strong negative effect on factors such as jobs and consumer confidence.

IRS clerks allowed to work during shutdown

by
Green Escrow Legal

After an intense lobbying effort my the mortgage industry 400 furloughed IRS clerks will be allowed to work – and get paid – during the current partial federal government shutdown. These clerks help potential home buyers verify their incomes. Without their work, the $1.3 trillion mortgage industry would be at a standstill.

Many questioned the government’s decision to allow the clerks to work, arguing that while their jobs are important, they are not essential as outlined by the law. It was seen as a favor to a powerful industry.

Government officials responded by saying it was done as a service to consumers trying to buy a home and not as a favor to the mortgage industry.