Mobile Area Association of REALTORS®

What a Government Shutdown Means for REALTORS®

If Congress can’t agree on how to fund the federal government by September 30, 2023, some government activities will have to stop for a while. This means certain programs related to housing and mortgages might be affected, but important things like the post office will still operate. Here’s a quick look at how some government agencies might be affected.

Even though this is a pretty complicated political situation, the Mobile Area Association of REALTORS® and NAR will keep an eye on what’s happening with government agencies. They’ll also work with Congress, the Administration, and other groups to figure out how this might impact their members who are in the real estate business.

Environmental Protection Agency

  • Most EPA employees will be furloughed.
  • Impact on wetlands determinations and lead-based paint programs.

Federal Housing Administration

  • New loans in Single-Family Mortgage Program continue, except HECM and Title 1 loans.
  • No new commitments in Multi-family Program.
  • Operational activities continue with possible delays.
  • Borrowers can get private flood insurance if NFIP lapses.

Government Sponsored Enterprises

  • Fannie Mae and Freddie Mac operate normally.
  • Considerations: employment verification, tax transcripts, social security number, flood insurance.

Internal Revenue Service

  • Limited IRS operations during shutdown.
  • Essential employees handle specific tasks.
  • Most taxpayer services on hold.

National Flood Insurance Program

  • No new/renewal policies during a lapse.
  • Existing policies remain until expiration.
  • Claims paid until funds exhausted.
  • Option for private flood insurance.

Rural Housing Programs

  • No new USDA rural housing loans.
  • Closings of Guaranteed Loans at lender’s risk.
  • Direct Loan closings on hold.

Veterans Affairs

  • Limited VA Loan Guarantee Service with delays.

Small Business Administration

  • No new small-business loans, but some loan processing continues.
  • Disaster Loans and PPP forgiveness applications continue.

Visa Programs – EB-5 and H-2B

  • EB-5 Regional Center Program continues with delays.
  • H-2B visa processing halted.
  • DOL foreign labor operations cease.

Delays in Agency Regulations

  • Delays in agency rule publications expected during shutdown.

Federal Government Shutdown Survey

  • 75% reported no impact on contracts or closings.
  • 11% reported impact on current and potential clients.
  • Most common impact: buyers deciding not to purchase due to economic uncertainty.
  • 1% reported closing delays due to USDA loans.

For more information on the potential government shutdown, contact Christopher Lugo, at