Rocket Fuel Newsletter – 09/23/23
Talk about a power couple: Justin Timberlake and Tiger Woods are opening a sports bar in NYC that is rumored to be 22,000 square feet with everything a sports fan could ask for.
In this edition, what you need to know as a mortgage professional about a potential government shutdown, the Fed’s latest decision and more.
Fuel Up! 🚀
The Federal Reserve Leaves Rates Unchanged
The Federal Reserve's September meeting left rates unchanged. It is speculated that one more rate increase is on the horizon for this year, with chairman Jerome Powell saying that “[The Fed is] prepared to raise rates further if appropriate.”
Click here for the full press release.
HUD Awards $60M To Help Address Youth Homelessness
Communities across the country, including four rural communities, were chosen to receive one of 16 grants focused on providing the tools and infrastructure to end youth homelessness. The funding was awarded through HUD’s Youth Homelessness Demonstration Program (YHDP) to support a wide range of housing programs, including rapid rehousing, permanent supportive housing, transitional housing and host homes.
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It is looking more and more likely that Congress will not be able to pass the required annual appropriation bills before the end of this fiscal year, which would trigger a government shutdown.
This past June, Congress worked with President Biden to suspend the nation’s debt ceiling. This deal set limits on annual spending for 2024 and 2025, which now must be agreed upon by the House and Senate before the start of the 2024 fiscal year (October 1, 2023).
While the Senate has passed all necessary appropriations bills, House Republicans are looking to cut spending. The House is also looking to add provisions to their spending packages, making it even more likely the proposals will be rejected by President Biden and the Senate.
One short-term solution, known as a continuing resolution, takes place when Congress can agree on temporary spending bills. Often an extension of the prior year’s spending bills, this would allow some room for the government to avoid a shutdown while Congress continues to negotiate a permanent spending plan.
So, what does all this mean for the mortgage industry? Any products that directly rely on government approval can expect delays during a government shutdown.
USDA loans will not be processed as they rely on the U.S. Department of Agriculture Rural Development, which would be closed. Federal Housing Administration (FHA) loans may need to be submitted to Housing and Urban Development (HUD), which could cause delays. Clients who are federal government employees or contractors might not be able to have their income verified, which would also result in delays.
Ultimately the effects of a government shutdown on the mortgage industry are minimal. However, it could be a headache for those affected if they aren’t aware of potential delays.
As the deadline nears, Rocket Pro TPO will make sure you’re fully aware of what to expect from Rocket if the government does shut down.
Fawaz, Vice President Don Chiesa and Divisional Vice President Chris Behrns visited our good friends at West Capital Lending in Irvine, California, this week!
We told you it’d be an easier puzzle! The average solve time improved by nearly 2 minutes last week from the week prior, led by Ashley’s time of 16 seconds and Loretta Pursell’s 27 seconds.
This week’s puzzle gets 3 Rockets out of 5. Click here to solve!
