Government Shutdown Could Cost Reverse Mortgage Sector Billions

The Government Shutdown Halts Reverse Mortgage Funding Because Lenders Can’t Get FHA Endorsements

government shutdown
President Trump’s government shutdown is approaching the two-week mark. It has now brought the reverse mortgage sector to screeching halt. The government shutdown has HUD is working with a skeleton crew. That means FHA cannot underwrite or endorse reverse mortgages or any FHA products. 
FHA released a notice stating it will not be underwriting or issuing insurance endorsements for HECM loans during the shutdown.  
The agency also stated assistance will not be provided for lenders with issues regarding the Collateral Risk Assessment. 
In addition, lenders must adhere to guidelines for the automated process if the first appraisal was submitted on or after November 30, 2018. 

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