The federal government shutdown is already creating delays and uncertainty that could impact your business. Key services REALTORS® depend on — such as federal loan processing, IRS verifications, flood insurance, rural housing, and VA programs — may be slowed or temporarily unavailable. While some essential operations continue, you and your clients should prepare for potential hiccups in transactions until funding is restored.

The National Flood Insurance Program (NFIP) Lapses with Shutdown:

• The federal shutdown took effect on October 1, and NFIP authority to issue new policies has expired.
• This threatens an estimated 1,400 property transactions per day.
• Existing policies remain valid for 30 days and can be transferred to new owners, but uncertainty grows the longer the lapse continues.

Housing Market at Risk:

• Every day the shutdown continues, potential real-life impacts will be felt in America’s housing market, which accounts for nearly 20% of the U.S. economy.
• Beyond NFIP, government shutdowns often delay IRS income verification, FHA and VA loan processing, and federal housing program funding—slowing or halting transactions nationwide.
• In total, shutdown-related disruptions could touch hundreds of thousands of homebuyers, sellers, and renters, adding uncertainty to a market already struggling with affordability and supply challenges.

NAR Advocacy Push:

•  NAR sent a letter to Congress urging NFIP extension and activated a coordinated advocacy campaign with Federal Political Coordinators nationwide.
• NAR continues pressing lawmakers to reauthorize NFIP and end the shutdown immediately.

Statement from Shannon McGahn, NAR Executive Vice President and Chief Advocacy Officer: “According to NAR research, the NFIP supports roughly half a million home sales annually, generating 1 million jobs and contributing $70 billion to the U.S. economy,” said McGahn. “Each day that passes during the shutdown, potential real-life impacts will be felt in America’s housing market, which accounts for nearly 20% of the U.S. economy. That is why NAR urges Congress to reach a funding agreement to reopen the government, while we also continue to advocate for a stable, long-term reauthorization

NAR’s Shutdown Memo is being updated regularly with details on how agencies like the EPA, HUD, GSEs, IRS, NFIP, Rural Housing Programs, Veterans Affairs, the Small Business Administration, and Visa Programs are expected to operate. The memo also includes NAR staff contacts for direct questions.