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October 03, 2025

PHH Mortgage Correspondent Lending - Government Shutdown

This announcement provides temporary guidance for selling loans to PHH during the time that the federal government is shut down. These temporary policies are effective immediately and will automatically expire when the federal government resumes full operations.

Loan Type/Issue Impact
Fannie Mae & Freddie Mac PHH will continue to purchase loans. PHH will align with the guidance communicated by Fannie Mae and Freddie Mac, excluding the Social Security Administration (SSA) and Verbal Verification of Employment (VVOE) topics detailed below.
FHA PHH will continue to purchase loans. PHH will align with the guidance communicated by FHA and HUD. Full descriptions and details can be found in FHA Info 2025-49 and HUD’s Contingency Plan for Possible Lapse in Appropriations document posted on HUD.gov.
USDA PHH will continue to purchase loans if a commitment is already issued; USDA will guarantee the loan after the government shutdown is over. If no commitment has been issued, the loan will be unable to close until the commitment is obtained.
VA PHH will continue to purchase loans. PHH will align with the guidance communicated in VA Circular 26-23-17.
Verbal Verification of Employment (VVOE) Prior to purchase, for borrowers employed by the federal government, PHH reserves the right to request an updated verbal verification of employment dated after October 1, 2025 to confirm that the borrower has returned to work under the same terms as prior to the furlough.
Tax Transcripts Completed 4506-C forms, signed at closing, continue to be required for all loans.
  • Fannie Mae, Freddie Mac, FHA, VA, and Non-Agency: IRS Tax or W-2 Transcripts are not required unless the underwriter deems that the tax transcripts are required due to a red flag.
  • USDA: As a reminder, USDA requires tax transcripts prior to loan closing to verify adult household income. USDA allows the loan to close without tax transcripts if the Client can document correspondence to and from the IRS in the file to support the omission. The asset statements must be reviewed to ensure no errant deposits are identified that may be attributed to additional income sources.
Social Security Administration (SSA) If Form SSA-89 is required, then the social security number validation from the SSA must be received prior to purchase. The social security number must match the credit report, W-2/tax return, and social security card.
Flood Insurance The loan file must include a flood zone determination. Properties located in a Special Flood Hazard Area must have flood insurance coverage or acceptable evidence of pending issuance.

Notes

  • PHH will continue to monitor the status of the government shutdown and impacts to our mortgage requirements; additional guidance will be provided as necessary.
  • PHH will not be responsible for any extension costs incurred due to delays caused by the government shutdown. Clients are responsible for selecting an appropriate lock term to ensure sufficient time for loan closing and purchase delivery.

If you have any questions, please contact your your Correspondent Specialist, Sales Executive, or contact us via the support line at 800-929-4744.

Thank you for your continued business.

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