IRS Reopens Key Program for Mortgage Loans During Partial Shutdown

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The IRS recently announced that it was reopening a program that is key to home lending after the mortgage industry said its closure during the partial government shutdown might force lenders to delay or even scrap loan closings.  According to the Wall Street Journal (as posted on Realtor.com) The Mortgage Bankers Association and other industry trade groups had complained to the Treasury Department that the program’s closure as part of the shutdown could harm consumers seeking to obtain a loan.

“Though the program closed because it was funded through the normal appropriations process, the administration determined it could fund it instead through the user fees the IRS charges each time it verifies a borrower’s income. Industry officials said the fees are about $2.00 per request….Reviving the program allowed some 400 IRS clerks to return to work, according to an IRS spokesman.”

Click here to read the full story on Realtor.com.

 

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Director of Education & Outreach, National Real Estate Investors Association

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