How will the government shutdown affect home loans? - WGEM.com: Quincy News, Weather, Sports, and Radio

How will the government shutdown affect home loans?

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QUINCY, Ill. (WGEM) -

The potential government shutdown comes in the midst of a housing recovery, and has many prospective buyers worried about getting a home loan.

Local bank officials say it's all about who your loan is through. President and CEO of First Bankers Trust Art Greenbank says agencies like the Federal Housing Administration, the Veteran's Administration, and the USDA could be affected by the shutdown because they're all government establishments.

But he says groups like Freddie Mac and Fannie Mae - which fall under the Federal Reserve - are safe. 
 
"The Federal Reserve is kind of a quasi-governmental private bank and it's really very independent in many respects to the federal government," Greenbank said. "It has its own source of revenue and should remain open no matter what the government does."

The shutdown would only affect people applying for a government loan and not those who have already received the money. 


 

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