1.HUD and FHA

HUD has published its contingency plan outlining which functions will continue during the shutdown. The FHA single-family and Ginnie Mae programs remain operational; however, HUD Headquarters and Field Offices are closed, with limited staff available to respond to inquiries. FHA issued INFO 2025-49, confirming that the agency will continue to endorse single-family loans and maintain all major systems, including FHA Connection, TOTAL Scorecard, LEAP, LRS, Neighborhood Watch, Catalyst, and CAIVRS. FHA’s multi-year loan guarantee commitment authority remains in effect through September 2026, ensuring insurance authority is not interrupted.

Although most systems remain available, lenders are responsible for verifying the accuracy of data such as employment and income through public records or other independent sources. The FHA Resource Center will continue operations since it is contractor-staffed, but responses to complex escalations may be delayed. FHA will also continue processing partial claims and facilitating loan workouts, though HECM and Title I loans will not be endorsed during the shutdown.

In terms of condominium processing, DELRAP approvals will continue, while HRAP reviews will pause until normal operations resume. FHA reminded servicers of their obligation to provide early default intervention and to continue submitting delinquency information through SFDMS. It also noted that the Loan Review System (LRS) remains under maintenance and will require additional time to come back online, and that Neighborhood Watch will not be updated with September data until after the shutdown.

2.HUD Section 184 Program

The HUD Section 184 program, which provides loan guarantees for Native American borrowers, is administered by the Office of Public and Indian Housing. Because this office is closed during the shutdown, no case numbers, firm commitments, or loan guarantees will be issued until funding is restored.

3.Ginnie Mae

Ginnie Mae continues to operate under its existing multi-year commitment authority through September 2026. The agency will maintain its ability to issue MBS commitments, process monthly loan and payment data, pay essential contractors, monitor issuer defaults, and review and process mortgage servicing rights (MSR) transfers. These activities are considered critical to preserving market stability and investor confidence during the shutdown.

4.VA Home Loan Program

The Department of Veterans Affairs has confirmed that housing benefits and loan guaranty programs will continue using prior-year funding. VA expects to operate its loan guaranty programs for the foreseeable future, though approximately 70% of Veterans Benefits Administration staff (including those responsible for loan guaranty support) are furloughed. As a result, while VA loan processing will continue, lenders and borrowers should anticipate longer response times and delays in communications

5.USDA Rural Development

USDA Rural Development is among the most affected agencies. Approximately 80% of its staff have been furloughed, and the agency will not issue new conditional commitments or guarantees during the shutdown. USDA has clarified that it will not retroactively guarantee loans closed during the shutdown without a valid commitment. Lenders using USDA programs should plan for a complete pause in new loan activity until operations resume.

USDA Contingency Plan

6.FHA Will Not Issue Temporary Guidance Similar to the GSEs

While the GSEs have issued temporary guidance to help lenders process loans involving government employees affected by the shutdown, FHA has confirmed it has no plans to issue similar guidance. HUD has, however, provided detailed instructions for verifying employment for HUD employees. Lenders should contact the HR Processing unit of the Administrative Resource Center (ARC) at (304) 480-8000 (Option 4) between 7:00 AM and 5:00 PM Eastern Time to obtain verification of employment (VOE) information.

This guidance, originally published in a May 2018 FAQ, remains applicable today. Additional information can be found at HUD Employment Verification. Other federal agencies may issue comparable instructions for verifying employment of furloughed federal staff.

Both Fannie Mae and Freddie Mac have issued temporary guidance to help lenders process loans during the shutdown, particularly for borrowers who are federal employees or who require IRS transcript verifications. The GSE guidance outlines alternative documentation methods and processing flexibilities while government systems are delayed or unavailable.

• Fannie Mae Guidance: https://singlefamily.fanniemae.com/media/43381/display
• Freddie Mac Bulletin 2025-E: https://guide.freddiemac.com/app/guide/bulletin/2025-E

7.Bottom Line

While the government shutdown continues to create uncertainty, the core mortgage infrastructure remains stable. FHA, VA, Ginnie Mae, and the GSEs continue to operate key programs, and the IRS’s verification services remain active under independent funding. However, lenders should expect delays in FHA processing, limited HUD communications, paused USDA commitments, and interruptions in flood insurance policy issuance.

EASE Compliance Advisors will continue to monitor developments closely and provide timely updates as additional information or agency guidance becomes available.