How Does The Government Shut Down Affect Your Real Estate Closings?

Many do not realize that this shutdown will actually affect even the real estate closings.  Here is a great resource showing how it will affect any upcoming closings courtesy of Ameris Bank.

Due to the government shutdown, effective 8/30 at midnight, the following summarizes the expected impact on government services.  Ameris Bank’s standard policies and procedures remain in effect, subject to change as more information becomes available.

IRS Form 4506T & Tax Transcripts

Although services for tax transcripts through IRS are expected to be impacted, Ameris Bank will continue to require signed IRS Form 4506‐T and tax transcripts, as applicable. We cannot close a loan if we do not have the transcripts returned.

Social Security Administration

Verification of Social Security Numbers through the SSA may not be available.

FEMA Flood Insurance

It is anticipated that most functions will not be affected. However, mapping issues or amendments may be impacted.


FHA Connection is expected to be operational in order to obtain case numbers, perform CAIVRS checks, obtain insurance endorsements, and pay upfront MIP premiums.

Loans with a case file number, approved appraisal, clear CAIVRS and FHA approval (if test case) may close provided all other standard requirements are met.

Potential issues include:

·         System issues preventing case #s from being obtained

·         Support staff may not be available to assist with loan level issues

·         Uncertainty concerning loans submitted for a case number but placed “On Hold”

·         Uncertainty concerning the ability to obtain FHA Project Approval if project is not FHA approved

·         Uncertainty concerning the ability to have a case number transferred from another lender


Loans with an approved appraisal and clear CAIVRS may close (provided all other standard requirements are also met).

The VA has issued the following statement: 

Impact: The VA Home Loan Guaranty Program will continue to operate as normal in the event of a Government shutdown.

Lenders and Servicers should continue normal activities which include, but are not limited to, the following:

·         Lenders should continue to submit funding fees through the VA Funding Fee Payment System;

·         Lenders can obtain their Loan Guaranty Certificates in the WebLGY system;

·         Lenders can continue to order and receive appraisals and issue Notices of Value;

·         Lenders and Veterans can continue to obtain a Certificate of Eligibility online through the appropriate systems; and

·         Servicers can continue to perform loan modifications, submit claims and receive claim payments, and convey properties to VA.



Loans with a USDA Conditional Commitment that does not contain provisional “subject to” language and with clear CAIVRS may close (provided all other standard requirements are also met).

Potential issues include:

·         May not be able to issue new commitments or Loan Note Guarantees

·         May not operate GUS

·         Support staff may not be available to assist with loan level issues

Courtesy of: