Heather Bergen, a real estate agent in Arcata, California, said one of her clients couldn’t verify her income for her mortgage lender, because the government office where she works is short-staffed. She was then unable to get a hold of a form she needs from the IRS, as many of the workers at that agency were also absent.
“It’s at the lender’s discretion if they’re going to take on that extra risk and waive that requirement,” Bergen said.
The housing market in Escambia County, Florida, was already slowing down over the last few months, said John Rickmon, a broker there. “This is the dagger,” he said.
Like Bergen, he’s heard of homebuyers struggling to obtain certain tax documents, as well as insurance from the National Flood Insurance Program — both requirements for many lenders.