Aside from the furloughed federal workers, the housing recovery may be the first economic victim of the government shutdown. As Warren Buffett once told me, "If we can fix housing, we can fix the economy." But the shutdown has put the majority of the IRS as well as a good chunk of the Federal Housing Administration out of work. "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," says David H. Stevens, the president and CEO of the Mortgage Bankers Association, who yesterday called for an end to the shutdown, citing "Confusion and fear among borrowers about whether they will be able to close on a home purchase or refinance." He added, that there were significant impacts on multifamily lenders, as well as rental housing properties that need FHA financing. While it's too early to say what the overall economic consequences will be, housing is one of the most important factors in economic growth right now-not only because of the direct effect of home building on the economy, but also because of related retail spending on everything from furniture to consumer goods.
Source: http://feedproxy.google.com/~r/time/topstories/~3/ORMSJo6hjbs/
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