Government Shutdown Q&A

Government Shutdown Q&A

Government Shutdown Q&A

Status and Agencies Affected

Q:  What is the status of the Government Shut Down?
A:  The current congressional budget appropriation expired December 21, 2018. Certain federal employees have been furloughed, and operations related to these federal agencies have been curtailed affecting ABMG’s ability to close loans.

Verification of Employment

Q:  I am an active duty member of the armed forces. Are there any provisions made during the Government Shut Down for verification of my employment (VOE)?
A:  If your loan application is with Conventional financing or VA financing, a Leave and Earnings Statement (LES) dated within 30 days of closing can be provided by the applicant in lieu of obtaining a VOE.


Q:  Can a loan close for a Government employee who is furloughed?
A:  If your loan application is with Conventional financing, the loan can close if all required documentation, such as paystubs and W-2’s, are obtained. We will require the verification of employment to be obtained as soon as it is available to complete your transaction. This may occur after closing.

Social Security/Tax Transcripts/Other Third-Party Services

Q:  If there is a discrepancy with my Social Security Number and it needs to be verified with the Government, will this affect the process?
A:  Social security number validation may be delayed during the shutdown. Depending on the type of discrepancy that needed to be verified, ABMG will review these loans on a case by case basis.


Q:  Can a loan close without the verification of tax returns via transcripts?
A:  This will depend on the type of financing and type of income stream. Conventional financing has made temporary provisions during the shutdown to allow Lenders the ability to make exceptions when certain alternative verifications cannot be obtained. The Conventional temporary provision is not inclusive of State Housing Loans.

Agency/Investor Specific

Q:  Will FHA services be disrupted during the shut-down?
A:  No, however some services could be delayed, and may not be guaranteed as the most up-to-date information, such as the Case Number Assignment, which is required to order an appraisal will not be available.


Q:  If my condo project is not currently approved with FHA, am I able to obtain such approval during the Government Shut Down?
A:  No. Because of limited staff, all services that require staff assistance such as Condo Project Approvals under the HUD Review Approval process will not be available.


Q:  Will USDA services be disrupted during the shut-down?
A:  Yes. All USDA state and local employees have been furloughed, resulting in their offices being closed and all services suspended. Unfortunately, because of this furlough, no USDA loans are able to be closed.


Q:  Will VA loans be affected by the Government shut-down?
A:  No, however some services could be delayed, and may not be guaranteed as the most up-to-date information is not available.

Loans Serviced by Atlantic Bay:

Q:  Can late fees be waived for borrowers affected by the shutdown?
A:  Yes, late fees can be waived for borrowers affected by the shutdown by contacting Servicing at the below phone number or email address.


Q:  Can a Borrower affected by the shutdown request a Forbearance?
A:  Yes. Forbearance Agreements are available to qualified Borrowers. Contact servicing for more information.

Servicing Contact: 888-387-9177 or servicing@atlanticbay.com

ABMG

Q:  What do I do in the event of an extended shut-down?
A:  ABMG will continue to monitor the situation and provide any additional information and guidance if the shut-down prolongs for any extended period of time. Details and guidance will be updated on our website as new information becomes available.