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Government Shutdown Delays Mortgages, Hurts Homebuyers Nationwide

10/3/2025

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Center

Government Shutdown Delays Mortgages

The federal government shutdown is delaying the mortgage process and slowing closings.
Zillow estimates more than 2,500 originations per working day are at risk from the shutdown.
Homebuyers in flood-prone areas face added hurdles as the National Flood Insurance Program is affected.
Internal Revenue Service (IRS)'s reduced services could hinder mortgage approvals requiring tax verification, complicating closings.

Right

James Faces Investigation

New York's Fannie Mae and Freddie Mac offices will close amid allegations against Attorney General Letitia James.
Federal Housing Finance Agency (FHFA) plans to remove New York presence while continuing mortgage operations.
A criminal investigation targets James's mortgage dealings, focusing on her 2023 Norfolk purchase.
James denies wrongdoing. The Department of Justice (DOJ) referral cites possible falsification of mortgage records.

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Government Shutdown Delays Mortgages

The federal government shutdown is delaying the mortgage process and slowing closings.
Zillow estimates more than 2,500 originations per working day are at risk from the shutdown.
Homebuyers in flood-prone areas face added hurdles as the National Flood Insurance Program is affected.
Internal Revenue Service (IRS)'s reduced services could hinder mortgage approvals requiring tax verification, complicating closings.

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