On December 22, 2018, the US Government partially shut down due to the expiration of the nation’s spending authority, as a result, some government agencies and services are closed or suspended, including the IRS and Social Security Administration. Gateway provides the following guidance, and temporary changes to existing guidelines, regarding underwriting and purchase requirements for loans impacted by the shutdown and closed during the shutdown. This guidance and applies to all loan types, including Agency, Non-Agency, FHA, VA and USDA.
Gateway’s required tax transcript and IRS Form 4506-T policy in our Client Guide Chapter 4 – Loan Delivery remains in effect and must be followed.
Properties with Flood Insurance:
Gateway’s required flood insurance policy in our Client Guide Chapter 4 – Loan Delivery remains in effect and must be followed.
Government Furloughed Employee VVOE:
Client must complete an Overlay Exception Request form for all borrowers employed by the federal government where a verbal verification of employment (VVOE) cannot be obtained prior to closing.
FHA 184 Loans:
Gateway requires a CoHort Number to confirm that funds have been reserved. FHA 184 loans without a CoHort Number will not be eligible for purchase.
USDA requires a Conditional Commitment Form 3555-18 issued prior to loan closing. USDA loans without the Conditional Commitment dated prior to loan closing will not be purchased.
Social Security Number Validation:
If the Social Security Administration’s (SSA) Consent Based Social Security Number Verification (CBSV) Service is offline and the Social Security Number (SSN) cannot be successfully validated, the loan is not eligible for purchase. All SSN discrepancies, alerts, etc., must be resolved prior to loan closing.
As a reminder, Clients are responsible for lock extensions, if required, and any extension costs incurred.
Note: These temporary policies are effective immediately and will automatically expire when the federal government resumes full operations, or at Gateway’s sole discretion. If the shutdown lasts for a prolonged period additional guidance may be provided by Gateway.
Please direct any questions to your Regional Sales Manager