Homebuilder ETFs Under Pressure As Government Drags Its FeetTuesday, October 8th, 2013
By Tom Lydon:
After swinging back in September, the housing market and homebuilder exchange traded funds could hit a snag as the government shutdown delays new home loans.
With the first partial government closure in 17 years, borrowers in the process of filing for home loans could be delayed as lenders are unable to verify Social Security numbers and access Internal Revenue Service data, Bloomberg reports.
Moreover, borrowers seeking approval for mortgages backed by the Federal Housing Administration will also have to wait, and the U.S. Department of Agriculture won’t take new applications for mortgages in rural areas.
"The last thing we need is anything that shakes the confidence in a softly recovering housing market," David Stevens, chief executive officer of the Mortgage Bankers Association and former head of the FHA, said in the article. "If it’s a short-term shutdown, it’s a story about these employees put out of work. If it’s