How is the Government Strike going to effect My Mortgage?

The answer is very little.  Other than the slow down of an already slow mortgage product (USDA), there will be very little delay to new loans and loans currently in progress. Unlike any other type of mortgage, the USDA loans require a full underwritten mortgage packet to be sent to them so that the USDA can rubber stamp the file with their seal of approval.  Assuming the strike continues for another week, this will delay the USDA loan closings for up to 2 weeks.  FHA, VA and other government backed mortgages will continue to get funded without delays.  These loans are insured by the government but not funded by the government, so they will continue without delay.  The only possible hiccup is that most lenders require an income tax transcript from the IRS prior to allowing funding on a loan.  This can be done at the very beginning of the loan process or just before the closing.  Most loans already in process have the transcript  in hand.  New loans that won't be closing for several weeks have plenty of time in which to obtain the transcript before closing.  The transcripts are usually processed within 48 hours, so there still remains plenty of time after the strike has ended, to get these documents from the IRS.  Rest easy, there is a 95% chance your loan will not be effected.

Andy Williams NMLS # 118317
President
Abacus Regional Mortgage
484 695 5972

No more Harleysville Bank

As many of you know, I have been doing business with a small local bank in Bucks County named Harleysville Savings Bank for many years.  They have always accommodated my customers by doing loans that didn't quite fit the mold of a saleable loan.  This means that what Fannie Mae and Freddie Mac deemed unworthy, Harleysville gladly accepted.  They didn't sell their loans and , in many cases, couldn't sell these loans.   They financed homes on many acres, log homes, non fannie mae approved condos, land loans, loans with mobile homes attached, 80% 1-4 unit investor financing, cash out refinances requiring no seasoning, and residential mortgages for LLCs.  Although their rates are extremely high and unattractive compared to the rest of the market, they still found a niche to finance the unique buyer.  Because of their desire to begin selling their loans on the secondary market, they have informed me that they no longer wish to do business with Brokers.  Effective September 30, 2012, I can no longer originate loans for them.  If you have had anyone pre approved by me prior to this date and I told you that I would be using Harleysville for the financing, I will no longer be able to honor this request.  I will have to take the mortgage application by the end of the coming week September 29, 2012 in order to finance it with them. I'm sorry for this inconvenience, but I'm currently seeking new lenders to fulfill this void. 

Andrew Williams
President
Abacus Regional Mortgage
NMLS # 118317
484 695 5972