This BLOG On President Declares National Emergency And How It Affects Mortgages Was PUBLISHED On February 15th, 2019
Mortgage Borrowers and Lenders were on the edge for the February 15, 2019 date.
- The government shutdown was temporarily opened until February 15, 2019
- The 2019 Partial Government Shutdown affected mortgage lending for 35 day
- This held true, especially for USDA Loans
- USDA was completely shut down due to the 2019 partial government shutdown
- Many home buyers with USDA Loans sat in limbo and their closings were delayed
- Many borrowers were stressing over the February 15th, 2019 date and waiting to see if the government was going to be shut down again
Today is February 15th, 2019 and the government will remain open due to President Declares National Emergency.
White House Announces President Declares National Emergency
Earlier this morning, the President Declares National Emergency with regards to getting funding to build the border wall in the U.S./Mexican Border.
Here is the proclamation by President Donald J. Trump:H
President Declares National Emergency Concerning The U.S./Mexican Border:D
DONALD J. TRUMP, President of The United States of America
President Threatened To Shut Government Down If Congress Did Not Agree On Border Wall Funding
President Trump temporarily ended the government shutdown three weeks ago until February 15th, 2019. If Congress did not give the President $5,7 billion dollars by then, the President threatened that he may either shut down the government and/or issue a national emergency under his presidential powers. Congress only authorized a fraction of the $5.7 billion. This is the reason why the President Declares National Emergency. This proclamation by President relieves home buyers, homeowners, realtors, and mortgage lenders. USDA was most affected by the partial government shutdown. The 2019 partial government shutdown affected mortgage lending. USDA Lending came to an abrupt halt due to USDA Agency Underwriters being furloughed. USDA has a two step underwriting process. The lender initially underwrites the borrower. It then gets sent to a regional USDA Agency Office and gets underwritten by a USDA government underwriter. Due to the government shutdown, all government USDA underwriters were furloughed. This affected many home buyers in closing their USDA Loans. The partial government shutdown also affected borrowers with other loan programs. Delays with IRS 4506-T caused delays in mortgage closing. Stayed tuned for more news on how politics affects mortgage lending.
