A prolonged government shutdown risks hampering US mortgage lending, derailing a nascent recovery in the country's housing market and making it harder for borrowers to secure home loans. The partial government closure, which entered its second day on Wednesday, makes it difficult for banks to check borrowers' personal data or secure government guarantees, restricting lenders' ability to process mortgage applications. A slowdown in mortgage lending would be unwelcome news for US banks, which have seen a sharp fall in home loan revenues as higher interest rates have ended a boom in mortgage refinancings. "You're going to be on the hook if there's a problem and that's why lenders are going to be reticent to lend without ," said Tom Esposito, group vice-president of mortgage lending at M&T Bank, a regional lender.
Source: http://www.ft.com/cms/s/0/e262a22a-2b74-11e3-a1b7-00144feab7de.html?ftcamp=published_links%252Frss%252Fworld_us_economy%252Ffeed%252F%252Fproduct
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