Government shutdown won’t shut down FHA

Despite reports to the contrary, the Federal Housing Administration will not stop processing loan applications in the event of a government shutdown at midnight tonight.

In what appears to be a reversal of an earlier position stated last week, the U.S. Department of Housing and Urban Development (HUD)’s Office of Single Family Housing will continue to endorse new loans “in order to support the health and stability of the U.S. mortgage market” should there be a lapse in appropriations, the agency said in its latest contingency plan.

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