|Title: ||Stevens Calls for End to Government Shutdown|
Washington, D.C. (October 3, 2013) – David H. Stevens, President and CEO of the Mortgage Bankers Association (MBA), today issued the following statement in
reaction to the government shutdown and its affect on the housing market.
“The federal government shutdown will have a growing impact on the housing market the longer it continues. If this shutdown
is temporary, the ones affected most will be out of work federal employees. However the longer it goes, the greater impact
it will have on borrowers, the housing market and the national economy.
“Lenders processing loans that need tax transcripts, social security number verification, or FHA home loans face longer delays
and reduced functionality from HUD, IRS, and the Social Security Administration. Different loan programs have different requirements,
and these disruptions impact lenders in different ways, leading to confusion and fear among borrowers about whether they will
be able to close on a home purchase or refinance. There are significant impacts on multifamily lenders, as well. Rental
housing properties awaiting FHA financing cannot move forward.
“The furloughs can disrupt time-sensitive mortgage transaction deals by interfering with borrower lock agreements and causing
interest rate disparities from the time of closing to the time the loan is securitized.
“For these reasons there must be a resolution so that borrowers and lenders are able to return to business as usual.”
The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry
that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the
association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand
homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and
fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety
of publications. Its membership of over 2,200 companies includes all elements of real estate finance: mortgage companies,
mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending
field. For additional information, visit MBA's Web site: www.mba.org.