March 1 Arrives With No Sequester Solution; FHA and RHS Home Loans Could Be Slowed
The March 1 date for implementing across the board federal budget cuts arrived with no action to delay or forestall the cuts. The automatic reductions will affect most government programs and could result in periodic furloughs of government employees.
FHA acknowledges that “furlough days could impact endorsement/claim timeframes” for FHA loans. The underlying insurance funds, funded by premiums, will not be affected by the sequester and “. . . FHA loans will be supported.”
Any furloughs at the Department of Agriculture could also slow down final processing of Rural Housing Service loans. All VA programs are exempt from the sequester.
NAR is closely monitoring the situation and will update members regularly.