Shutdown-forced closures of the IRS and Social Security administration delay home loan applications
Last Updated: 71 days ago
DENVER - The partial government shutdown is headed into its third day and is already causing delays for would-be home buyers.
With the Internal Revenue Service closed, tax return transcripts are not being processed. Those papers are required for many home loans.
The Social Security Administration is also closed, meaning a loan applicant's social security number can't be verified.
"Without having the ability to get those from the government we are at a standstill," said Rod Schuster of Universal Lending. "We can work around the tax transcripts in some instances, (but) the social security number issue is completely separate issue, where there is no workaround."
Several brokers told 7NEWS reporter Jaclyn Allen they saw the writing on the wall and pushed as many applications through those checkpoints as possible before the shutdown. But new loan applicants should be aware that most lenders have their hands tied.
"If a new borrower comes in tomorrow and wants a loan and wants to close in 30 days, if the government doesn't get back up and running and provide us some means for getting those social security numbers verified, then we're stuck and we can't close the loan," Schuster said.
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