Federal Government Shut Down

With the federal government shutdown currently in effect, several areas of mortgage processing are being impacted. Please review the following guidance to ensure smooth loan delivery during this period.

Flood Insurance

  • The National Flood Insurance Program (NFIP) authority to issue or renew policies expired on September 30, 2025.
  • Requirements:
    • Loan files must include flood zone determinations.
    • Properties in Special Flood Hazard Areas must carry flood insurance.
    • Private flood insurance is not affected and may be used during the NFIP lapse.

IRS IVES / Tax Transcripts

IRS Income Verification Express Service (IVES) has historically continued through shutdowns, but no updated contingency plan has been issued. For loans where an IRS transcript is required: 

  • Requirements:
    • If transcripts cannot be obtained, borrowers will need to obtain transcripts directly from the IRS website and provide them to the Broker.
    • Transcripts must be included in the loan file prior to delivery to Arc Home. 

Borrowers Employed by the U.S. Government

·         Arc will follow the temporary policies enacted by Fannie Mae as it relates to Verification of Employment and Pay Stubs.

·         VOEs for government employees may be disrupted, should that occur, the following will apply:

    • Arc Home will accept VOEs completed by automated systems or third-party services
    • If a verbal VOE is unable to be obtained prior to closing, a verbal VOE may be completed post-closing with an additional paystub dated within 30 days of closing.  The Broker must include documentation/evidence that the VOE could not be obtained prior to closing due to the shutdown.
    • In all cases, employment verifications and VOEs must still be included in the Mortgage Loan file delivered to Arc Home under standard delivery requirements.

·         Paystubs

    • If the borrower’s most recent paystub is dated more than 30 days prior to application, an additional paystub dated within thirty days of the note date must be obtained post-closing.

SSN and SSI Validations

  • The Social Security Administration has not historically processed SSN validations during shutdowns.
  • Requirements:
    • Arc Home will follow the temporary policies enacted by Fannie Mae as it relates to SSN validations. 
    • If unable to validate an SSN prior to closing, the SSN may be validated post-closing, but prior to delivery.
    • If a borrower’s SSN cannot be validated prior to delivery, the loan is ineligible for sale to Arc Home.

Please contact your Arc Home Account Executive if you have any questions.

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