After the government has failed to approve a budget in regards to funds for government operations, there will be impacts expected for several federal housing and mortgage programs. Each agency is required to have a contingency plan in place during the shutdown; here are the plans of operation for agencies throughout the shutdown.

Federal Housing Administration

During the course of the shutdown, the FHA will endorse single-family loans in order to help support the health and stability of the housing market. It is expected that there will be delays during the process, especially if the shutdown lasts for several weeks.

VA Loan Guarantee Program

The Department of Veterans Affairs said that the shutdown will not affect home loans for veterans. Again, delays are expected during the process.


It is reported that the Internal Revenue Service will be unable to process lender requests that verify borrower information during the government shutdown. For large loans, some lenders will not do them without tax verification from the IRS.

Rural Housing Programs

The U.S. Department of Agriculture is halting new housing loans and guarantees issued through its Rural Development programs during the shutdown. The lender may proceed with the closing if they have received a conditional commitment from the Rural Development office, but if the lender has not received a conditional commitment, they must wait until funding legislation is enacted before they can close a loan.


Companies that are not reliant on appropriated funds like Fannie Mae and Freddie Mac will continue operating as normal, as will their regulator, The Federal Housing Finance Agency.


The Making Home Affordable program is funded through the Emergency Economic Stabilization Act, which is mandatory spending, not discretionary. This means that the program will not be affected.

Consumer Financial Protection Bureau

The bureau will not be affected during the shutdown because the agency is not funded by federal appropriations. Since it is funded by the Federal Reserve, it receives funds by the interest it earns on U.S. government securities.

Flood Insurance

FEMA will not be impacted by the government shutdown, though some non-disaster assistance transactions submitted may not process until after the shutdown. Flood program changes have taken affect as of October 1st as scheduled.