The federal government has shut down for the first time in six years, with the previous shutdown lasting 35 days. Supervision by the federal banking regulators is not affected by the shutdown as those activities are funded by bank assessments instead of congressional appropriations. However, other units of government like the SEC and FinCEN must rely upon contingency plans, with a focus on maintaining essential activities that fit within exceptions and reducing all other operations.

During this shutdown, the Office of Management and Budget has indicated that it may move to permanently reduce the government workforce in addition to the temporary furloughs with backpay that have historically occurred. Fannie Mae and Freddie Mac do not rely on federal funding and will continue to operate. However, applications for government-guaranteed loan programs could be affected by processing delays, and importantly the FEMA-administered National Flood Insurance Program will be unable to sell new or renewal insurance policies during the shutdown.

Author: sdbrownlow

Student of Design