Government shutdown hits mortgage market - wave3.com-Louisville News, Weather & Sports

Government shutdown hits mortgage market

Posted: Updated:
Steve Adams Steve Adams

LOUISVILLE, KY (WAVE) – If you're actively in the market to buy a new home or business and need a mortgage, the process is now delayed due to the government shutdown. In fact, you may not be able to close until Washington reaches an agreement.

When putting down a contract to buy, the loan officer verifies the buyer's social security and income to move forward with closing but because the SSA and IRS are shutdown, the process is paused.

"They will bring in their W2s, their taxes, or any other financial records and they will disclose their social security number to us," said Steve Adams, a loan officer at Stock Yards Bank. "We have to verify both of those are accurate with what the IRS and Social Security Administration actually have."

Many buyers are looking to snatch a new home before any hike in interest rates. Right now, the rates that customers lock in could expire.

"If we do a short term lock on something and then we're down to the wire trying to get some of the information that we need to verify social security numbers," Adams said. "Or to verify the income that's been disclosed to us initially and then there's extension fees, the question is, ‘who's going to pay those extension fees?' it's not the customers fault."

Adams said they haven't decided what they will do but the customers won't have to pay. For now, they're sending in the documents to the SSA and IRA in hopes Washington will resolve the issue shortly and business will resume.

Copyright 2013 WAVE 3 News. All rights reserved. 

  • Most Popular StoriesMost Popular StoriesMore>>

  • Only On 3

    4-year-old boy banned from local doughnut shop

    4-year-old boy banned from local doughnut shop

    Tuesday, July 22 2014 6:55 PM EDT2014-07-22 22:55:12 GMT
    Kids say the darndest things, but one local inquisitive 4-year-old boy asked a question that got him banned from a Monroe doughnut shop.More >>
    Kids say the darndest things, but one local inquisitive 4-year-old boy asked a question that got him banned from a Monroe doughnut shop.More >>
  • Lawsuit: Princeton BMC doctors amputated man's genitals without prior warning

    Lawsuit: Princeton BMC doctors amputated man's genitals without prior warning

    Wednesday, July 23 2014 10:56 PM EDT2014-07-24 02:56:38 GMT
    A Jefferson County man is suing his doctors and a local hospital, alleging that he went in for a circumcision but when he woke up, doctors had amputated his genitals.More >>
    A Jefferson County man is suing his doctors and a local hospital, alleging that he went in for a circumcision but when he woke up, doctors had amputated his genitals.More >>
  • Are Louisville food trucks making the grade?

    Are Louisville food trucks making the grade?

    Wednesday, July 23 2014 11:06 PM EDT2014-07-24 03:06:24 GMT
    WAVE 3 News Troubleshooter Eric Flack's investigation into food trucks last summer was one of his most talked about stories in years. His undercover video and health department interviews stirred a fiery response. Now, a new report about food truck safety has been released by the Institute for Justice, and it's good news for the industry and food truck operators.More >>
    WAVE 3 News Troubleshooter Eric Flack's investigation into food trucks last summer was one of his most talked about stories in years. His undercover video and health department interviews stirred a fiery response. Now, a new report about food truck safety has been released by the Institute for Justice, and it's good news for the industry and food truck operators.

    More >>