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A weak cold front will work into the area later tonight with a chance of rain. Chance of rain into early Sunday as well. Best instabilities are to our southwest and thats where the heaviest rains will be. A little cooler tonight into Sunday with mostly cloudy skies. Upper Low will cross the region Monday night into early Tuesday with ...
Government shutdown impact on loans
BEAUMONT- by Haley Bull
Some people in the banking industry worry about the impact of the government shutdown on the economy. One important factor in the economy's financial strength is the housing industry. Despite the shutdown, people in the industry say they are seeing little impact right now.
The shutdown is preventing the IRS from verifying a critical form lenders use to check tax returns from people who want loans to buy homes. Normally, it is a requirement in processing a loan.
Dave Faul, president of Homestead Mortgage in Beaumont, said the banks he does business with put suspensions on that requirement.
"Part of the government shutdown, part of the IRS is shutdown. So the part that affects the verification system is shutdown," Faul said. "But basically because the banks have suspended that requirement, it's business as usual for us."
Andy Hemmings, a sales manager for Caldwell Banker Southern Homes, said he has not seen any impacts yet. However, a longer shutdown could have impacts.
"The longer the shutdown lasts the longer it's gonna take to get loans closed," Hemmings said.
Faul also said a long-term government shutdown could create more issues.
"I think a long term issue could be a problem because verifying the tax returns is a key component under normal circumstances of validating the consumer's return," Faul said. But within two weeks to a month, he said he still doesn't see it being an impact.
Faul said the shutdown is immediately affecting people seeking loans for rural properties through the U.S. Department of Agriculture.
Even with these factors, Faul said it's still a good time to buy a house. "Business as usual. Rates are great. It's a good time to buy a home."