Insignia’s Neil Patel Featured In MPA Magazine

Posted on by Admin

Congratulations to Neil Patel for his recent feature in MPA Magazine as a Top Originator! Neil has been a rockstar on Insignia Mortgage’s team for several years as a mortgage broker and CPA.

“In the heart of Beverly Hills, where the real estate market is as dynamic as the city’s famed boulevards, Neil Patel stands out as a mortgage strategist who’s not merely crunching numbers but turning complex transactions into success stories. 

Patel (pictured) is a licensed mortgage broker and CPA at Insignia Mortgage, specializing in underwriting loans for borrowers with complex financials and tax returns.

A specialist in complexity

While many mortgage brokers might shy away from complicated cases, Patel and his team at Insignia Mortgage lean into them.

Focusing on boutique mortgages, they cater to a unique clientele: the self-employed, high net-worth individuals, and those whose financial situations might seem like a puzzle to most.

“A lot of Los Angeles people are self-employed,” Patel said. “They tend to have self-employed tax returns, LLCs, and corporations.”

This often leads to a disconnect between what’s on paper and the client’s actual financial standing. But where others see complications, Patel sees an opportunity to bridge the gap, simplifying these complexities for underwriters and banks.”

Read the full article now at https://www.mpamag.com/us/specialty/wholesale/top-originator-spotlight-neil-patel-of-insignia-mortgage/459216

Market Commentary 9/8/2023

Posted on by Damon Germanides

Has Inflation Peaked? Bond Market Yields Suggest Uncertainty… 

Where Does Inflation Go from Here? 

A peak in service inflation may be on the horizon. A noteworthy example is Walmart, one of the nation’s largest employers, which recently announced that new hires will be earning less. This adjustment signifies a potential slowdown in wage inflation, which had surged to unsustainable levels due to the pandemic, supply chain bottlenecks, and substantial government stimulus. Initially encouraged by the Fed, this wave of inflation is unlike anything witnessed in the past 40 years and was largely due to the assumption that inflation would be transitory. 

While we are witnessing some moderation in inflation concerning goods (though still too high by our standards), service inflation remains persistently elevated. This is placing significant strain on businesses of all sizes, as consumers are becoming less tolerant of higher-priced goods and services. This is why the Fed is not rushing to lower interest rates.  

The situation becomes increasingly complex when we consider why interest rates remain high despite indications that inflation might be cooling off. Two key factors come into play. Firstly, the price of oil, hovering around $90 per barrel, is preventing a more significant drop in inflation. Although the Consumer Price Index (CPI) has declined from over 9% to roughly 3.2%, moving from 3.2% to 2% will be a lengthy process for the Fed. Secondly, the massive budget deficits of many developed nations are no longer being disregarded by bond traders (this includes the United States). Our government’s debt burden has led bond buyers to demand higher yields to compensate for the perceived risks associated with holding such bonds. 

Lastly, it is important to recognize that interest rate cycles are lengthy, whether on the ascent or descent. We are currently on an upward trend. Unless significant adverse events occur, this trajectory is likely to persist.  Assuming a 3% long-term inflation rate, it is not inconceivable that longer-dated bonds trade between 4% -5%.   

In the Next Two Weeks… 

Keep a close watch on next week’s inflation readings and the subsequent week’s Federal Open Market Committee meeting. In the current climate, everything revolves around inflation and interest rates. Additionally, pay attention to the 10-year Treasury bond, which is teetering at the 4.25% mark. If it breaches 4.35%, the markets could face a challenging remainder of the year. 

Market Commentary 9/1/2023 

Posted on by Damon Germanides

Bonds Can’t Catch A Break Amidst Unemployment Rate Increase 

The July Jobs Report brought encouraging signals for both the bond market and the Fed. However, the workforce saw an influx of more workers than could be absorbed, resulting in the unemployment rate rising from 3.50% to 3.80%. While wages are still growing, they are beginning to moderate and show signs of trending lower. This shift might provide the Fed with justification to hold off raising rates at its next meeting. Although the futures market indicates around a 40% chance of a November rate hike, we anticipate that this might mark the last rate increase of the cycle (if it does occur). On the other hand, mortgage bonds and Treasury yields oddly increased, potentially influenced by a weakening dollar and surging oil prices. 

Nonetheless, it’s important to avoid drawing broad conclusions from a single report. Commodity price inflation and service inflation remain high, and the Fed would likely want to see more substantial declines in these numbers. Conversations with local business owners reveal that input costs are eroding profits. Passing these increases on to customers is becoming increasingly challenging. The persistent difficulty business owners have in finding staff is keeping wages elevated. Notably, a major national retailer catering to lower to middle-income consumers, Dollar General, has reported that its customers are feeling financial pressure and adjusting their purchasing habits. This demographic has been hit hardest by elevated prices and could be a significant concern for the Fed. This context supports our belief that even if the Fed stops raising rates, a downward shift in interest rates might be a prolonged journey. Fed Funds rates could remain potentially elevated well into 2024 or even 2025. 

Loan Success Takes Grit 

Navigating the mortgage landscape is no longer a straightforward endeavor. While we maintain access to excellent products and lenders and are successfully closing loans, the path can be turbulent. Underwriting guidelines at banks are tightening, debt funds and mortgage banks are grappling with an illiquid secondary market, and limited housing supply in major cities complicates loan qualification. Financing costs have surged while housing prices have remained stagnant, particularly affecting higher-end home purchases. In this landscape, experienced mortgage brokers are proving invaluable by sourcing better-priced loan options, exploring more nuanced alternatives like interest-only or investment property loans, and connecting with smaller banks that embrace innovative thinking. Our broker team at Insignia Mortgage, for instance, achieved over $40 million in closings in July, while our fix-and-flip and bridge lending arm, Insignia Capital Corp, closed over $12 million in business. It was far from effortless. What matters most is that all our clients successfully completed their crucial transactions. 

Loan Officer Wealth Podcast Features Damon Germanides and Chris Furie

Posted on by Admin

The Loan Officer Wealth Podcast with Chris Johnstone interviewed Insignia Mortgage co-founders, Damon Germanides and Chris Furie, in episode 113 released this week. The Loan Officer Wealth podcast is designed to share the systems, habits, and secrets that top-performing professionals use to build a life of wealth and freedom. This is the first double episode of the podcast that has ever been produced. The formatting was adjusted to honor the fact that Insignia Mortgage’s co-founders, Damon & Chris, are ranked #4 and #7, respectively, on the Scotsman’s Guide for 2023’s Top Mortgage Brokers. When combined, they make Insignia Mortgage the largest volume lender in the nation. In this episode, Johnstone discusses the dynamic partnership that has helped Damon and Chris grow their incredible business, Insignia Mortgage. They also share their journey to becoming Top 10 Mortgage Brokers on the Scotsman Guide, the process of working their leads, database, and referral partners, as well as tips on refining your niche.  


Listen now via Apple Podcasts, or Spotify, or click the image below.

Market Commentary 8/11/2023

Posted on by Damon Germanides

Rates Can’t Catch A Break  

Although the Fed is making progress in the battle against inflation, a tougher phase awaits in substantially curbing inflation due to the so-called base effects. The forecast for tougher times cemented itself after surpassing last June’s 9 percent plus CPI reading. Some experts on Wall Street anticipate that inflation readings for August may climb higher since July witnessed significant hikes in oil, gas, and other commodity prices. While service and wage inflation has shown moderation, their persistence coupled with recent wholesale inflation figures indicates a larger-than-anticipated rise. Our stance remains that the Fed will not be lowering rates anytime soon, considering the daily struggle of America’s most vulnerable to cope with rising costs. 

The combination of stubborn inflation and a budget deficit of more than 1 trillion dollars puts pressure on US Treasuries and government-guaranteed mortgage debt. Concerned voices are clamoring in response to the size of our debt and its long-term sustainability. Global issues further complicate the US Bond market with Japan’s loosening yield curve control, China and Europe’s economic dilemmas, and the ongoing conflict in Ukraine. Investors are demanding higher yields, a phenomenon reflected in the 10-year Treasury comfortably crossing the 4.00% mark, with longer-term bonds nearing 4.500%. The point at which these elevated yields begin impacting the equity and housing markets is uncertain. However, it is increasingly likely that both sectors will be negatively affected by rising rates. 

We recently emphasized the significance of the Fitch downgrade of the US credit to AA+. Although Wall Street didn’t fully grasp the implications of this situation, the narrative has evolved. Unlike 2011, this downgrade reflects much higher debt/GDP ratios, unsustainable budget deficits, and a more dysfunctional US political system. Whenever the cost of capital is negatively influenced, it deserves serious consideration. 

From our network of banks and lenders, we’re hearing signals that the long and variable impacts of Fed policy are starting to reverberate through the system. Delinquencies and loan modifications on commercial loans are on the rise. Businesses are facing squeezed revenue and operating margins. Credit card balances are soaring. These effects warrant careful observation in the upcoming months. 

Our broker team invests significant time in discovering new lenders, many of whom remain unfamiliar with the market. It might sound biased, but having a robust mortgage broker on your side is crucial in today’s landscape. Transactions are encountering a myriad of issues, and the ability to swiftly pivot to a new lender or solve a problem is invaluable. The Insignia Mortgage broker team excels in both these domains, while also securing the most competitive rates and terms for complex loans. The days of relying solely on one big bank for client loans are long gone. 

During our recent attendance at the Inman conference in Las Vegas, NV, we gathered intriguing insights from various speakers about the market’s current state: 

  • Quicken Loans anticipates improvements in the rate market in the coming months. The drop in mortgage brokers, real estate brokers, and salespersons signifies the existing home market remains somewhat stagnant. While it presents challenges, it could pave the way for those who navigate it successfully. 
  • Traditionally, existing home sales constituted a major portion of the market, but current homeowners are reluctant to move. However, around 25% are planning to relocate within the next few years, aligning with Quicken’s recommendation to persevere. 
  • Zillow predicts that rates will remain high for longer than Wall Street anticipates. Service inflation and housing shortages contribute to inflation, and the focal point for home buyers should be millennials, who are expected to make up 43% of new home buyers. 
  • The mortgage and real estate industry must adapt to AI (Artificial Intelligence), incorporating it into lead generation and follow-up strategies. With AI we can achieve more with less. The challenge lies in how effectively we embrace it. While 20% will seize the opportunity, the remaining 80% might miss out. Those who embrace AI stand to gain efficiency and profitability. 

Market Commentary 8/5/2023

Posted on by Damon Germanides

Bonds & Equities Shaken By Fitch Downgrade Of US Credit

This week was filled with noteworthy economic developments. The bond market experienced significant fluctuations following Fitch’s downgrade of the US credit rating from AAA to AA. The latest July Jobs Report, though weaker than expected, provided some relief to the bond market (which experienced a notable climb earlier in the week). Nonetheless, persistent wage growth and a tight job market continue to challenge the Federal Reserve. As a result, inflation remains a concern at the forefront.

Amidst these developments, other factors are contributing to inflationary pressures. These factors include rising commodity prices, geopolitical tensions, and potential labor strikes. While the immediate impact of the Fitch downgrade may be limited, it serves as a vital reminder that addressing long-term spending issues is important for our nation’s prosperity.

The Future Of Rates & The Impact Of Inflation

The path of interest rates remains uncertain. Some potential scenarios range from further rate hikes due to wage inflation to a soft-landing recession narrative. All outcomes necessitate careful navigation of the Fed’s interest rate and QT policies. While we observe signs of falling inflation, wage inflation persists, leaving room for at least one more potential rate hike (if not two) in the future.

On the other hand, the consequences of the Fed’s substantial rate hikes over the past year and QT policies are gradually seeping into the financial system. As interest rates rise, lenders are tightening their loan offerings. Narrowing such loan options could impact economic growth in the coming months. Even so, it is worth noting that the American consumer has demonstrated remarkable resilience, readily accepting higher interest rates and loan payments.

The normalization of mortgage rates on a historical basis is apparent, but when combined with soaring home prices, the overall cost feels steep. As a result, the existing home sale market has experienced a slowdown in activity. At the same time, some market segments have witnessed odd price increases due to a lack of available housing supply. Despite these challenges, the adaptability of consumers underscores their ability to weather economic fluctuations.

Podcast “MPA Talk” Features Damon Germanides

Posted on by Admin

MPA Talk, the podcast for U.S. mortgage professionals by MPA Magazine, featured Insignia co-founder, Damon Germanides, in their latest episode entitled “Serving Up Solutions.” In this episode, host Simon Meadows interviewed Germanides for his perspective as a broker who specializes in complex loans, particularly for those who are self-employed. They discuss how he cut his teeth in the last big financial crisis of 2008, before co-founding Insignia Mortgage in Beverly Hills, California, in 2010. Beginning slowly, the company established relationships with smaller banks and credit unions, to build the business to where it is today. The son of a restaurant owner, Germanides likens the mortgage industry to the restaurant industry in terms of the tough challenges it presents – it’s been his driving force to succeed.

“My dad owned a restaurant for 43 years, an, that business is such an tough business that I used to look at the mortgage business and say, ‘as tough as it is today, man, the restaurant business is, is even tougher’. I’ve picked tough businesses because both of them have their challenges. That was a driving force early in my career, knowing how hard another business was, made me pretty tenacious.

When 2008, 2009 hit, my good analytical skills really started to shine because the business had moved away from the limited information type loans or the no doc loans or whatever. You had to have a complete understanding of the borrower’s financials, which required mortgage professionals to start to learn to read tax returns, understand cash flow, you know, do a sensitivity analysis on revenue and income, understand everything on the borrower’s financials and that, that really fit well with my skillsets.”

Damon Germanides, on why his key skills made him a good fit for the mortgage industry.

Listen to the full episode below, or via your podcast streaming platform of choice.

MPA Talk, July 21, 2023, featuring Damon Germanides, a broker who specializes in complex loans, particularly for those who are self-employed.

Get The Most From Insignia Mortgage

If you haven’t already, subscribe to Insignia Mortgage’s weekly market commentary and receive Damon’s unique insights on the mortgage industry via email.

Market Commentary 7/21/2023

Posted on by Damon Germanides

Markets Party On As Risk Appetite Grows Amidst Discounting Higher Rates

The investment landscape remains complex, as it has always been. With the constant influx of daily reports and updates, it’s easy to be distracted by market movements and opinions. In the equity markets, big tech companies have led to significant gains for some investors. Conversely,  a more balanced approach has yielded only moderate returns or worse for others. The risk-on trading sentiment seems to be prevailing, even as interest rates rise and the Fed indicates a prolonged period of higher rates.

In the housing market, although new home builders are thriving, existing home sales face challenges in major cities due to limited inventory.  As many banks pull out of the mortgage market and layoffs have become more common, the mortgage world shows it is not immune to its share of challenges. Smaller banks and credit unions step in to fill the gap, providing opportunities for boutique firms like ours to match borrowers with lenders who prioritize community growth, common-sense underwriting, and personalized service.

New Standards On The Horizon: Inflation, Debt, & Consumer Spending

Equities surge and multiple offers continue to be prevalent in the more affordable section of the housing market. We can’t ignore the broader economic concerns of these behaviors becoming almost the standard as they relate to the inflation fight. Unemployment remains ultra-low and the employment pool tight, commodity prices are on the rise, the 2-year Treasury rate is nearing 5%, and consumers continue to spend (even if by way of debt). It is hard to model how the massive Covid-related money spray and multiple Government stimulus programs will affect inflation. However, there is a greater than zero probability that inflation readings show signs of acceleration come the fall. This may be one reason the Fed is expected to raise rates next week and possibly again in September.

While the markets and consumers seem comfortable with the Fed’s rate hikes, we remain cautious. Powell’s warnings about potential pain may not have materialized yet, but we believe it’s essential to monitor the situation closely.

Market Commentary 7/14/2023

Posted on by Damon Germanides

Mortgage Rates Rally On Cooling Inflation Readings

The latest CPI data indicates that inflation appears to be moving in a favorable direction. The Producer Price Index (PPI) also experienced a decline, which was well received by both the bond and equity markets (PPI measures production costs). Although another 25 basis point rate hike in July is widely anticipated, further increases in the near term seem unlikely. Nonetheless, given the persistent nature of current inflationary pressures, there is concern that a thriving equity market could spur increased spending… Which would potentially lead to a resurgence in inflation. It is worth noting that speculative areas of the equity market, such as Crypto and AI, have performed exceptionally well. Such positive performance suggests the Fed may believe more action is necessary to curb inflation. While higher rates may not be imminent, it is our belief that the Fed will maintain higher interest rates for an extended period, considering that equities have nearly recovered most of the losses incurred in 2022. Additionally, we expect the Fed to continue with quantitative tightening until a significant crisis emerges.

JP Morgan’s better-than-expected outlook for the second quarter has set the tone for earnings season. Wells Fargo, among other banks, also reported earnings and increased loan loss reserves for its commercial portfolio. In the coming weeks, we predict more write-downs of office loans from regional banks, given their significant exposure to commercial office loans. A 2008 redo appears unlikely even as some parts of the commercial real estate market experience growing stresses.

There is a noticeable uptick in purchase money loan activity, potentially driven by added inventory within certain areas. This observation is based on local market assessment, including discussions with realtors, monitoring real estate websites such as Zillow and the MLS, and the presence of more “for sale” signs in the neighborhood. Pre-approval activity is escalating, with a majority of pre-approvals falling within the $1 million to $3 million price range. In terms of refinances, we are seeing a growing number of requests. The majority of these refinance requests are coming from self-employed borrowers who aim to consolidate higher-interest business debt, credit card debt, or commercial debt through a home loan refinance.

Q2 2023 Transaction Spotlights

Posted on by Admin

Throughout the second quarter of 2023, Insignia Mortgage has solidified California’s Jumbo Loan Experts. Our portfolio of jumbo loan successes this past quarter is a testament to our team’s dedication to surpassing client expectations.

Q2 2023 Transaction Spotlights

$9 Million, 75% LTV, 5.500% APR

The highly qualified borrower was seeking maximum leverage on a new home purchase. His financials were difficult to analyze due to the major expansion of his company over the last year, which affected net income. An additional challenge in closing the transaction was coordinating with a very nervous seller, who was quite worried as the two previous buyers could not obtain financials.

$2.2 Million, 80% LTV, 6.250% APR

Insignia Mortgage was approached by a client looking to close escrow on a property with 2 missing bathrooms. The borrower wanted to complete the remodel of the bathrooms himself. Insignia located a lender willing to close on the unfished property and allow the borrower to complete the remodel himself.

$4.6 Million, 43% LTV, 6.500% APR

The borrower approached Insignia Mortgage for an Owner Occupied Construction Loan after the purchase of a lot. The borrower recently sold his business and is being paid a salary over the next few years by the company. Insignia Mortgage was able to locate a lender that was able to use the client’s balance sheet and income to qualify for the Owner Occupied Construction Loan.

$980K, 43% LTV, 8.500% APR

The borrower required a DSCR loan after being turned down for a bank statement loan on the property. Funds were going to pay off another debt. Insignia Mortgage was able to locate a max LTV lender who was also OK with vesting the property in an LLC and providing cash out.

$3.05 Million, 80% LTV, 8.475% APR

The borrower was looking for maximum leverage on a new home purchase using his business bank statements. Insignia Mortgage located a lender that provided 80% financing and LLC vesting with a closing in under 20 days

$1 Million, 68% LTV, 6.250% APR

Insignia Mortgage canvased the lending marketplace for a sharp pencil 30-year fixed-rate loan for this very qualified borrower. Our hard work paid off as we were able to locate the best-priced option and won the deal for our client.

$2.1 Million, 50% LTV, 8.500% APR

The borrower was looking for a loan program that would not verify income, as she was self-employed and she earned income both domestically and abroad. Given the complexity of her financials, it was decided to utilize a no-income or employment verification loan program.

$1.62 Million, 80% LTV, 5.875% APR

The borrower just moved from New York to California. After renting for a month, he found a condo in Marina Del Rey he wanted to purchase. Insignia Mortgage was able to locate a lender with below-market rates to quickly close the loan with no origination costs.

  1. Pages:
  3. 1
  4. 2
  5. 3
  6. 4
  7. 5
  8. 6
  9. 7
  10. 8
  11. ...
  12. 48