Mortgage Update – August 9, 2016

    The Six Most Important Things You Need to Know From the Mortgage World this Week.


    Shelter Mortgage only uses the very best local appraisers, but why is this so important?


    Big banks and brokers are required to and many other mortgage companies choose to use Appraisal Management Companies (AMC’s).


    AMC’s draw from a huge network of appraisers. Whoever accepts the order first ususally gets the appraisal. This creates a very impersonal process with little accountability to the real estate agent or Loan Officer involved in the transaction.


    Often times, the AMC appraiser will drive from a long distance to complete the appraisal. The result is they often don’t know the area well.


    AMC’s drive up the cost of appraisals because a 3rd party is involved, however, the appraisers typically get a pay cut as they only get about half of the collected fee. Thus, many appraisers feel forced to rush orders just so they can make a similar amount of money.


    The AMC’s quality control department can also be very strict and most appraisers fear this. The result is usually a very conservative appraised value. Stick with Shelter and avoid the AMC headache!



    Two highly anticipated economic events last week caused significant, but offsetting, reactions to mortgage rates. The Bank of England announced a new bond purchase program to stimulate economic atvitivy that was well received and influenced rates lower. Friday’s employment report, however, was much stronger than expected showing 255K jobs being added to the economy in July and moved mortgage rates slightly higher for the week.


    Second Quarter Productivity will be released on Tuesday, the Job Openings and Labor Turnover Rates Report on Wednesday, and Retail Sales on Friday.


    Jim Scheu
    NMLS# #659050 GA #51170
    Senior Loan Officer
    Shelter Lending Services
    5780 Windward Pkwy, Suite 100
    Alpharetta, GA 30005
    Visit my Website
    Mobile: 404.906.6010
    Fax: 610.629.6369

    If you have questions about your mortgage needs, please contact our preferred mortgage lender – Jim Scheu with Shelter Lending Services at 404.906.6010 or click the blue banner just below to send him an email.

    The material is intended for licensed mortgage professionals only and is not an extension of credit. Information contained in this document is subject to change without notification. ©2016 Shelter Lending Services, LLC is an Equal Housing Opportunity Lender. NMLS#1033753 ( This communication does not constitute a commitment to lend or the guarantee of a specified interest rate. All loan programs and availability of cash proceeds are subject to underwriting and property approval. 695 Mansell Road Suite 200, Roswell, GA 30076. James Williamson NMLS# 552530, AL:#59117, GA:#36174, TN:#120865. Georgia Residential Mortgage Licensee # 38779.

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