Brokers warn that confidence and processing delays persist after the shutdown
The federal government’s reopening may have ended the longest shutdown in the United States history, but its effects continue to ripple through the mortgage industry, according to brokers and industry leaders.
While the immediate threat of disruption has eased, many borrowers and lenders are still grappling with the aftershocks—especially those relying on government-backed programs.
Amir Nurani, broker-owner at Left Coast Leaders, described the shutdown’s impact on his business as both immediate and enduring.
“Yes, the shutdown did in fact impact our business. Specifically with our military and government employee clients. Their pay was disrupted, which prevented taking action on being able to purchase a home. Shook confidence across the board, which also impacted decision making,” Nurani told Mortgage Professional America.
A Redfin survey found that 45% of Americans are now less likely to make big purchases like homes or cars because of the federal shutdown—more than double the 21% who felt that way in early October.
“And I think the impacts of this are still lingering, even after the shutdown. People don't just bounce back to everything's okay. Especially considering the current reopening is only good through January, at which we are at risk of another shutdown,” he said.
Processing delays and backlogs remain
The shutdown forced agencies like the USDA to halt new rural loan guarantees, leaving buyers and lenders in limbo. With operations resuming, the agency now faces a bottleneck as it works through a backlog of applications.
The National Flood Insurance Program, which underwrites over 90% of residential flood insurance policies nationwide, is also resuming new policy processing. However, buyers closing on properties in flood-prone areas may still face delays as the program clears pending evaluations and issuances.
FHA and VA loans, which rely on federal staff for processing and endorsements, experienced delays as well. While some operations continued on a limited basis, the backlog grew.
The federal government reopened Thursday after a record 43-day shutdown, with President Trump signing a stopgap bill that will fund operations through January 30.https://t.co/8wl5pbkQm9
— Mortgage Professional America Magazine (@MPAMagazineUS) November 13, 2025
Uncertainty clouds borrower confidence
Beyond the immediate delays, industry leaders flagged broader concerns about the reliability of government-backed lending.
Past shutdowns have shown that even short disruptions can ripple through the market, delaying closings, increasing costs, and creating confusion for both borrowers and lenders.
The shutdown also disrupted the release of key federal economic reports, leaving the Federal Reserve with incomplete data ahead of its next rate decision.
“All of that economic data released will be permanently impaired, leaving our policymakers at the Fed flying blind at a critical period,” White House press secretary Karoline Leavitt said.
Industry urges lasting solutions
Scott Olson, executive director of the Community Home Lenders of America, welcomed the reopening but urged Congress to address recurring risks.
“Progress towards ending the federal government shutdown is welcome and should help normalize the operations of various federal mortgage programs,” Olson said.
While FHA forward loans continued, programs such as the Rural Housing Service and FHA’s HECM reverse mortgages were effectively frozen, leaving borrowers and lenders in limbo.
“CHLA appreciates this action—and is calling on Congress and federal agencies like RHS to work together so that all federal mortgage loan programs can uniformly operate during government shutdowns to process new loans,” Olson said.
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