October 4, 2013
United Guaranty – Ready to Help During the Government Shutdown
1. We’re here to help with FHA uncertainty.
At United Guaranty, we know the last thing you want is uncertainty in your mortgage loan closing process. With the current government shutdown and FHA's request of funds to subsidize their capital requirements, we understand there is some confusion about FHA's continued ability to do business as usual. Also, depending on the length of the shutdown, there may ultimately be delays with the closing of your loans.
During the government shutdown, if you and your borrower want to take the steps to facilitate a loan closing with conventional MI, we are ready to help:
- We'll underwrite any FHA fully documented loan that meets our requirements (full requirements available online).
- We typically turn around full-file submissions in 24 hours or less, so timelines for closing your mortgage can be met.
- With United Guaranty, you get full underwriting support with every full-file submission.
2. Temporary underwriting requirement waiver for furloughed government employees.
We’ve made these temporary updates to our underwriting requirements to support borrowers affected by the current government shutdown:
- A Verbal Verification of Employment (VVOE)
Obtaining a Verbal Verification of Employment (VVOE) may not be possible if the borrower's employer is shutdown. If this is the case, United Guaranty will waive the requirement for a VVOE to be obtained by the lender within 10 business days prior to the Note date for employment income, or within 30 days prior to the Note date for self-employment income. The lender will not be required to obtain the VVOE after the shutdown ends if the loan has closed.
- 4506-T and IRS transcripts
United Guaranty aligns with the Agencies in that a 4506-T is required to be completed and signed by each borrower (this is not prevented by the government shutdown). United Guaranty does not require submission of the 4506-T to the IRS to obtain the transcripts.
- Furloughed employees
We're hopeful this shutdown will be temporary. Therefore, if a lender receives information that a borrower has been furloughed, the loan may be closed without any reverification of employment but United Guaranty will continue to require income to be documented.
We know that disruptions are never welcome, but if we can help you close on time, please let us know.
If you have additional questions, please call our Underwriting Customer Service Department at 877.642.4642, or feel free to contact your Account Executive.