Lender Letter LL-2026-02 Impact of Federal Government Shutdown

Impact. This guidance establishes Fannie Mae's expectations for how approved lenders should handle loan origination and servicing operations during federal government shutdowns when key verification systems and regulatory processes may be unavailable. Your institution must implement backup procedures for income verification, employment confirmation, and regulatory reporting when federal agencies suspend operations, while maintaining GSE delivery timelines where possible.

Risk. Operations teams face the greatest exposure during shutdown periods when standard verification workflows break down and loan processing timelines compress once agencies reopen. The coordination burden across Government Relations, Compliance, and Loan Origination creates documentation gaps and potential GSE delivery failures if contingency procedures aren't clearly defined and tested.

Recommended Action. Government Relations should immediately coordinate with Operations and Compliance to document current federal verification dependencies and draft contingency procedures for the next shutdown scenario. Map which loan products rely on federal database access and establish alternative verification methods that maintain GSE eligibility standards.

Watch. Monitor for updates to this guidance as the March 2026 effective date approaches and track any federal appropriations discussions that could trigger implementation of these procedures.