@ucdcrew wrote:
I wonder if its a byproduct of the continuing resolution. Budget uncertainty can do some interesting things to federal programs, and Congress keeps kicking the can down the road on trying to pass a budget.
Although USDA obligations do tend to "run out" toward the end of a fiscal year (Federal), the lack of a budget approval or end of year Continuing Resolution Appropriation Bill is the current factor - no doubt.
In September the short-term CR was kicked to December 22nd, that was kicked forward to January 19th, 2018 and THAT date will be kicked forward until March 5th or so. A signed "Continuing Resolution Appropriation Bill" is usually long-term meaning until the end of the fiscal year. A "basic CR" is short-term which is what we are operating on now, kicking the can down the road for a few weeks or months. To understand the complete Federal Budget and then Authorization-Appropriation process will give you a migraine and I'm not going to even try to explain it here - let alone the politics - just know that a CR continues forward current budget-appropriations (meaning you can actually spend the money) based on what was previously approved during the previous "approved" spending levels.
As far as USDA approved mortgages, this is a program funded by the Department of Agriculture at X dollars per fiscal year. If X dollars are already obligated by say July of a given year, no additional loans can be offered until the next bucket of money is available (start of the new fiscal year as long as there is an actual appropriation approved - think of Appropriation = Budget, it's not USGov speak accurate, but it'll ease a pending headache). With a short-term CR even if it's a series of short-term CR's that bucket of money is NOT authorized or appropriated except for 3 weeks or a month going forward so it's next to impossible to fund mortgage loans 3-4-6 weeks in advance.
This is not "politics" per say, but because of politics (no matter what you read in the news as far as the cause), the ongoing CR is about budget issues sidetracked by "other factors" such as immigration, healthcare, etc. - its a distraction and delay but in reality makes little difference in actual funding for programs . 2018 is an election year meaning the ever pending CR is going to get extended fairly soon through election day - it's going to become more and more of a distraction as Congress gears up for elections and that factor alone will get the "budget" passed.
Bottom line, USDA funds will be flowing again pretty soon - the rest is just a sideshow.
Note: I've stayed away from the blame game and the who/what for special interest issues (aka politics) and used briefly only the how/why of CR's and budget issues - politics do play a role but please that's not where I hope the discussion will go.
