Shelter Six:  Despite Shutdown, Mortgage Business Still Closing Loans

1. As the partial government shutdown enters its third week, the mortgage business continues to function and close loans.

2. Conforming and VA financing have not been impacted but FHA is working with a limited staff and, as things get busier, there could be delays with FHA closings.

3. Also, a prolonged shutdown could soon lead to more serious problems as lenders have growing difficulty verifying income and funding loans.

4. On a positive note, Employment figures came in much stronger than expected on Friday with a whopping 312K new jobs added to the economy in December.

5. The Unemployment Rate unexpectedly increased from 3.7% to 3.9%, but this was mostly due to additional workers entering the labor force, which is viewed as a sign of strength.

6. The Consumer Financial Protection Bureau’s plans to change its name to the Bureau of Consumer Financial Protection are dead in the water and the agency will continue to be known as the CFPB moving forward.

Rate Update

Strong Employment figures raised concerns about inflation and contributed to rates pushing higher on Friday after having dropped a good bit over the previous week.

This Week

The ISM National Services Index will be released on Monday, minutes from the latest Federal Reserve meeting on Wednesday, and the Consumer Price Index on Friday.

January 7, 2019 by · Leave a Comment

About James

James A. Williamson is currently the Sr VP of Sales Development for Shelter Lending Services (formerly Fairfield Mortgage). James joined Shelter in 1994 and was the company's top Loan Officer in GA for 20 straight years helping over 2500 families finance their homes. James now oversees an incredible group of Loan Officers in Atlanta while further building Shelter's Atlanta business.

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