MBA’s Broeksmit Comments on Potential Government Shutdown

Mortgage Bankers Association President & CEO Robert D. Broeksmit, CMB, commented yesterday on a potential government shutdown at the end of the fiscal year.

“As of this writing, both the House and the Senate continue to engage in difficult discussions and negotiations to fund government operations beyond September 30, 2023 – the end of the current federal fiscal year,” Broeksmit said. “If Congress is unable to reach an agreement – which, if achievable, would come in the form of a short-term Continuing Resolution (CR) providing funding until later this year – federal agencies, including HUD and Treasury, will cease to function normally. The National Flood Insurance Program (NFIP) authorities also expire on October 1st.”

Broeksmit noted many MBA members have shared concerns about the likely disruption to business operations and to borrowers that a government shutdown and a lapse in the NFIP would cause. “I can assure you that MBA has been in regular contact with key congressional leaders on both sides of the aisle and has stressed the importance of coming to an agreement to fund the government and reauthorize the NFIP,” he said.

It is important to remember that we have been down this inconvenient path before and can rely on past shutdowns for guidance on the likely impacts to single-family and commercial/multifamily markets, Broeksmit said, noting that earlier this month, MBA created a guide outlining how HUD (including FHA and Ginnie Mae), VA, and USDA would be directly affected by the furlough of government employees and the curtailment of agency operations.

“Since 2017, the NFIP has been extended 25 times and allowed to lapse briefly on several occasions, so the threat of an expiration of the program is not new,” Broeksmit said. “We have been an active advocate for avoiding a lapse in the NFIP, most recently leading a joint letter to congressional leadership that urged them to act quickly on an extension.”

“Rest assured, we will continue to voice our members’ concerns to key policymakers and staff – in both the Congress and the Biden administration – regarding the detrimental effects of a shutdown of any length. We’ll keep you posted as events unfold and we learn more. In the meantime, we value your questions and concerns as September 30th draws closer.”