What Does the Government Shutdown Mean for REALTORS®?

Congress has failed to approve a Continuing Resolution (CR) providing funding for most government operations. Therefore, spending authority for most of the government expired at midnight on Sept. 30, 2013. Until legislation providing for funding is signed into law, many offices and programs of the federal government are now shut down. This means many, but not all, government programs, including some that impact federal housing and mortgage programs, have been suspended or slowed due to the lapse in government funding. The Office of Management and Budget (OMB) requires each agency to have contingency plans in place. The information below is based on NAR staff review of agency agency contingency plans for the current shutdown and past experience with previous shutdowns and near-shutdowns. Download PDF summary. read more

An article by Jack Guttentag August 27, 2013

The Home Equity Conversion Mortgage (HECM) program is a Government-supported reverse mortgage program for elderly homeowners. The program allows seniors to take a mortgage on their home under which they can draw funds in a variety of ways – upfront, monthly or intermittently as they choose – with no repayment obligation so long as they reside in their home.  

The HECM program would not exist without Federal Government support. The lenders who advance funds to the seniors are guaranteed repayment by the FHA while virtually all of the HECMs that are written are securitized, with the securities guaranteed by GNMA. In an environment of severe budgetary stringency, a question arises as to whether this program is worthy of Federal Government support? Some legislators think not and several House Republicans have introduced legislation that would kill the program.  read more