Rates Fall As Economy Shows Signs Of Slowing
I wanted to share an observation with you regarding the recent rate hike journey initiated by the Federal Reserve. Over the past few weeks, Insignia Mortgage has witnessed a significant upsurge in inquiries for cash-out refinances, bridge loans, and second mortgages. Borrowers are seeking these solutions to address higher interest-rate debt or growing financial obligations. We attribute this rise in inquiries to borrowers experiencing loan adjustments from increased interest carry, coupled with the Fed’s hints of higher rates for a longer duration.
Bank underwriting remains stringent for best rate execution, as evident from the latest senior loan officer survey. The impact of these tightening lending conditions on the residential and commercial real estate markets is yet to fully unfold. So far, the housing sector has shown resilience, while the commercial office market faces more challenges. Looking ahead, we anticipate an intriguing landscape in 2023 and the first half of 2024. Higher interest rates will likely necessitate price adjustments to accommodate the increased cost of capital for leveraged property acquisitions.
The Lending Pool Outlook
While some lenders strive to keep interest rates at 6.000% or below, we acknowledge that the pool of lenders offering moderate rates and flexible underwriting continues to shrink. However, at Insignia Mortgage, we remain committed to diligently exploring the market and identifying lenders capable of closing transactions efficiently. We are seeing a big uptick in the non-QM space as borrowers struggle to qualify for a loan. These non-QM programs are helping as they are less strictly underwritten, but carry a higher rate for the commiserate risk.
BEVERLY HILLS, CA – June 22, 2023
As of June 22, 2023, Insignia Mortgage is thrilled to welcome Jay Robertson to our team of brokers. Jay has over 30 years of experience in the mortgage industry. As the former president of First Capital and Luther Burbank Mortgage in Los Angeles, he has overseen or personally originated over $20 billion in loans in Southern California.
Jay’s deep knowledge of the industry, combined with his commitment to exceptional customer service, makes him a perfect fit for Insignia Mortgage. We know that his expertise will help us to continue providing our clients with the best possible service and advice.
In his new role at Insignia Mortgage, Jay will work closely with clients to help them secure the right mortgage for their needs. He will use his extensive network of industry contacts and his in-depth knowledge of the mortgage market to help our clients navigate the complex process of securing a mortgage.
Damon Germanides, co-founder of Insignia Mortgage commented that “Jay brings such a unique perspective to Insignia Mortgage as he has been both a CEO of a large mortgage company as well as a loan originator. He knows better than most what it takes to win over clients and how to create long-term partnerships with referral partners. His knowledge will be great to our boutique firm.”
When asked to describe his customer relationship style, Jay stated that “I believe in taking care of my clients.” He is known for being a trusted advisor who always puts his clients’ needs first. “It’s not about the volume of business I do. It’s about arming my clients with the most current information so they can make educated decisions about their future,” he explains. Jay’s honest and expert guidance, backed by decades of experience in real estate finance and luxury residential real estate sales, continues to define his personalized white-glove approach to service.
About Insignia Mortgage
At Insignia Mortgage, we understand that what works for one client does not always work for everyone. Especially when your financial picture doesn’t adhere to the strict model that many conforming lenders demand. Even under the most complex circumstances, our team of loan experts can quickly navigate through the process to deliver the most highly competitive loan solutions. We’ve successfully closed some of the largest and most complex transactions in the country for high net-worth clients, many of whom are self-employed and have significant assets but fluctuating incomes; and, for foreign nationals who receive income outside of the United States or are buying in the United States for the first time.