FHA Will Continue Lending During Shutdown
Does the shutdown actually stop anything?
Applications for all government-backed mortgages will continue to be processed during a government shutdown, according to the U.S. Department of Housing and Urban Development.
HUD originally said on Friday that it would stop working on applications for loans guaranteed by the Federal Housing Administration if the lights go out in Washington. But it reversed that position over the weekend.
"The HUD Contingency plan posted on Friday mistakenly included incorrect information about a potential shutdown's impact on the FHA single-family loan program," HUD said in a statement. "FHA will be able to endorse single family loans during the shutdown. A limited number of FHA staff will be available to underwrite and approve new loans."