Padgett Law Group has compiled a comprehensive overview of relevant Agency Alerts pertaining to the ongoing Government Shutdown, effective October 1, 2025. As the government shutdown enters its initial phase, various federal agencies have begun issuing critical guidance and operational updates that impact a wide range of industries and individuals. Padgett Law Group has diligently gathered and analyzed these alerts to provide a concise and actionable summary for our clients and partners.
Our team is committed to continuously monitoring these developments and providing timely updates to help you navigate this evolving landscape. We recommend reviewing these alerts carefully and assessing their potential impact on your operations and interests. Further, we advise consulting with legal counsel to address any specific concerns or questions that may arise. The ongoing Federal Government shut-down may impact publication on the FHA or other Federal Agency websites. The FHA Info cited below was sent out via the Agency's subscription service.
FHA Info 2025-49:
In this Announcement:
Click here for the full details.
Fannie Mae:
Lender Letter 2025-03, Excerpt as to Servicing:
“The shutdown may impact a borrower’s ability to make scheduled mortgage loan payments. To assist borrowers who are unable to make their monthly contractual payment as a result of the shutdown, we are reminding servicers that they are authorized to evaluate the borrower for a forbearance plan in accordance with Servicing Guide D2-3.2-01, Forbearance Plan. A borrower who is currently performing on a repayment plan or a Fannie Mae Flex Modification Trial Period Plan and is impacted by the shutdown may seek consideration for a forbearance plan. If the borrower does convert from a repayment plan or a Trial Period Plan to a forbearance plan, the borrower may subsequently be eligible for a workout option upon successful completion of the forbearance plan.”
Link: LL-2025-03 Impact of Federal Government Shutdown
Freddie Mac:
Bulletin 2025-E, Excerpt as to Servicing:
Forbearance
To assist Borrowers directly impacted by the shutdown, Servicers may offer forbearance in accordance with Chapter 9203.
Borrowers who are currently performing on a repayment plan or a Flex Modification Trial Period Plan and are impacted by the shutdown may request a forbearance plan. If the Borrower converts from a repayment plan or a Trial Period Plan to a forbearance plan, the Borrower may be eligible for a workout option upon successful completion of the forbearance plan.
FHA, VA and RHS Mortgages
Servicers of FHA, VA and RHS Mortgages should follow the requirements issued by those government agencies during the shutdown.
Processing of IRS Form 4506-C
If the Servicer is unable to obtain a tax transcript from the IRS through electronic processing of an executed IRS Form 4506-C (opens in new window) per the Guide, the Servicer must obtain a copy of the Borrower’s most recent complete and signed individual federal income tax return, when required.
Servicing Mortgages requiring flood insurance
As mentioned above in the eligibility for sale of Mortgages that require flood insurance section of this Bulletin, our requirements for flood insurance remain unchanged. During a lapse in the NFIP’s authority, payments to renew expiring policies must be made as scheduled.
Seller/Servicers that accept interim evidence of NFIP coverage as described above during a lapse in the NFIP’s authority must follow up once the NFIP’s authority has been reinstated to ensure that they have final evidence of coverage meeting the requirements of Section 8202.4.
Private flood insurance is not affected by a lapse in the NFIP’s authority.”
Link: Guide Bulletin 2025-E
Press Release- Excerpts Below:
“Ginnie Mae plays a critical role in the secondary mortgage market, providing stability and liquidity, and maintaining the overall health of the economy. As such, Ginnie Mae will continue to perform all functions necessary to ensure that there is not a disruption in the market during a potential lapse in appropriations. These functions include granting of commitment authority, support for continued issuance of Ginnie Mae-guaranteed Mortgage-Backed Securities (MBS) (including related PIIT pools) and Real Estate Mortgage Investment Conduits (REMICs) and taking all actions necessary to ensure timely payment of principal and interest to investors. During a potential lapse in appropriations, single-family and multifamily loans will continue to remain eligible for securitization so long as they meet requirements for insurance/guaranty of the insuring/guaranteeing agency when they are pooled and are in the process of being insured or guaranteed.
For more information, including FAQs, see HUD's Contingency Plan for a Possible Lapse in Appropriations.”
Link: Press Releases
Press Release- Excerpt Below:
“The FTC is closed as of midnight Wednesday, October 1, 2025, due to the lapse in government funding. Website information and social media properties will not be updated until the government re-opens. All FTC events are postponed until future notice. Some online services are available, and some are not.”
Link: Status of FTC Online Services During 2025 Lapse in Funding | Federal Trade Commission
OPM Furlough Guidance: Furlough Guidance