- Division of Banks
Today marks the 34th day of the partial Federal Government shutdown. Despite its status as the longest shutdown ever, there are no signs that a compromise is near that could return the government to full operations. Below is a list of federal agencies with a brief note about how each is affected based on the information available to us currently. The longer the shutdown continues, the greater the chance that some additional agencies will be impacted.
- Federal Banking Agencies are operating
The CFBP, Federal Reserve, FDIC, NCUA, and OCC are all funded and working during the shutdown. The CFPB, CSBS, Federal Reserve, FDIC, OCC, and NCUA issued a joint statement encouraging financial institutions to work with affected customers on January 11, 2019. The Massachusetts Division of Banks issued a similar statement on January 17, 2019.
- FinCEN is shut down, but limited activities are continuing
Currency transaction reports are still being received and reviewed during the shutdown. The regulatory help desk is operating, and the agency is providing support for enforcement cases. See the agency plan here.
- IRS is shut down
The Internal Revenue Service does not have funding, but recently the IRS announced that tax returns would be accepted beginning on January 28 and that tax refunds would be processed and mailed as usual during the shutdown. The full statement is posted on the IRS website here and the IRS Contingency Plan is posted here.
- HUD is shut down
The agency published a contingency plan that outlines what is happening during the shutdown. The FHA is unable to underwrite or approve new loans.
- Farm Service Agency is shut down
All field and district offices are closed. Loan applications can still be made online, but there is no one working who could act on them during the shutdown. The press release detailing operations during the shutdown can be read here.
- SEC is operational
SEC has some funding that it can use to remain open. It is not certain how long those funds will last. Regulations relating to Dodd-Frank and derivatives could be delayed by an eventual shutdown. The SEC published a contingency plan on its website.
IPO filings are also impacted. On January 13, 2019, the Financial Times reported “… the SEC has halted reviewing IPO filings during the shutdown, and neither Uber nor Lyft has received comments from the agency about their registration statements, according to people familiar with the matter. That could delay the companies’ internal timelines for their listings.”
- Small Business Administration is shut down
There some limited processing of disaster loans available, but most programs have been stopped during the shutdown. The SBA has posted a contingency plan.
- CFTC is shut down
Only four percent of the Commodity Futures Trading Commission employees are “essential” and required to work. The agency published shutdown procedures in the Federal Register on October 1, 2013 and released a statement by Chairman J. Christopher Giancarlo and contingency plan on December 21, 2018.
- Flood Insurance is operational
On December 28, FEMA announced that it would resume selling and renewing flood insurance policies during the government shutdown, bowing to pressure from lawmakers and the banking industry. FEMA’s statement noted that normal operations would resume, and the program would be “considered operational since December 21, 2018 without interruption.”
Just as a reminder, the federal agencies listed below have stated that their guidance from 2010 remains in effect, even if the funding for the National Flood Insurance Program lapses. State banks may continue to make loans subject to the National Flood Insurance Act, as amended, 42 U.S.C. §§ 4001-4029, and 12 C.F.R. Part 339, without flood insurance during a period when the NFIP is not available. Such lending does not violate Part 339 according to the federal agency guidance. Specific guidance from the agencies is linked below.
- Farm Credit Administration is operational
The Farm Credit Administration is not appropriation based so it is not affected by the shutdown.
- Department of Labor is operational
All Department of Labor offices are open according to their website.
- Department of Veterans Affairs is operational
The Department of Veterans Affairs is fully funded for fiscal year 2019, and in the event of a government shutdown, all VA operations will continue unimpeded.
- Health and Human Services is operational
Most of HHS’s Operating Divisions are funded through FY 2019
- Department of Education is operational
The Department of Education is funded through FY2019 so all aspects of the agency are operational, including requiring repayments of student loans. However, a contingency plan has been developed for a lapse in FY19 appropriation.
- Housing Agencies are operational
Ginnie Mae, Fannie Mae, and Freddie Mac will all continue their operations without interruption.
- Ginnie Mae issued a statement about operations on December 22.
- Fannie Mae issued guidance on January 16 regarding lender and servicer assistance to borrowers affected by the government shutdown.
- Freddie Mac issued guidance on January 16 regarding lender and servicer assistance to borrowers affected by the government shutdown.
- US Treasury is shut down
The US Treasury has posted its contingency plans for employees and its website status. Contingency plans for Treasury bureaus and agencies as also posted.
- Office of Personnel Management
OPM recently posted Pay & Leave Furlough Guidance which includes sample letters which affected federal employees may send to creditors or mortgage companies as well as links to other agencies’ contingency plans.