At least one private mortgage insurance firm sees opportunity in the shutdown of the federal government and the uncertainty surrounding government-insured lending. Accommodations are also being made for furloughed applicants.
That company, United Guaranty, has issued a notice to its customers touting its ability to step in as the Federal Housing Administration sits under a cloud.
The Greensboro, N.C.-based mortgage insurer said that during the government shutdown it will underwrite any FHA fully documented loan that meets its requirements as published online.
Underwriting turnaround on full-file submissions is no more than 24 hours, and each submission includes full underwriting support.
For government employees who have been furloughed, United Guaranty is waiving the requirement for a verbal verification of employment.
The requirement for verbal VOEs within 10 business days prior to the note date will be waived, as will the requirement for the verification within 30 days for self-employed borrowers. In addition, lenders won’t be required to obtain the verbal verification after the shutdown if the loan is already closed.
Re-verification won’t be necessary prior to closing for furloughed employees. But income will still need to be documented.
Although borrowers will still be required to provide a completed and signed 4506-T, the form won’t need to be submitted to the Internal Revenue Service for transcripts.
