Mortgage Lending Update

Good Day -Restaino and Associates and Friends!  My name is Joe Boyle, and I am the Producing Sales Manager and a Mortgage Consultant with Educated Mortgage Services, LLC here in the greater Madison area! Educated Mortgage Services is an Independent Mortgage Bank offering the service, power, and knowledge of a broker with a community banking touch. As an example, we underwrite and fund a majority our mortgages internally rather than relying on third parties to fulfill mortgage loans. Here at Educated Mortgage Services, we approach the mortgage process as a financial planning opportunity! How can we assist our clients in achieving financial success with the integration of a mortgage and homeownership! 

I find myself discussing the same themes in this article as I have in recent memory! Interest rates and affordability, supply and demand, cost of building, navigation of the contingencies in the offer to purchase, and buyer preparedness! As part of our financial planning approach here at Educated Mortgage, buyer preparedness is first and foremost. Having a lending partner discuss some of the contingencies in the offer, further assists the homebuying process!  Can we creatively help a buyer write a more competitive offer while protecting him or her? Those kinds of questions and themes are discussed and presented in detail to our clients. Here in Southwest Wisconsin and in the Greater Dane County Area specifically, we are still seeing a tremendous shortage of homes. There are many contributing factors to the lack of housing supply including interest rates, cost of upgrading/building/developing, labor talent pools, desirability of our region, etc.

The Crystal Ball- The robustness that we are seeing here in the Greater Dane County area, is in many other markets in the United States foreign. Price reductions are more prevalent than multiple offer situations. Even in some Wisconsin Markets, we are seeing homes sit for much longer. To account for a soft landing economically, The Federal Reserve Bank is citing Quantitative Easing or rate cuts on the not-too-distant horizon. While rate cuts in several markets are necessary and welcomed, it may prove to be “gas on the fire” here in the Greater Dane County Area. We are experiencing a robust demand and lack of inventory in the “higher rate” environment. Now is the time for many buyers. The cost of waiting is more prevalent than ever before.  Many of the indicators that the Federal Reserve measures to set monetary policy have been quite robust this year until April data was released in May.  Some of these examples include CPI and PPI (different inflationary indicators), retail spending, and the jobs report!  These items have been leading the Federal Reserve to keep rates elevated.  The April data, however, was a bit softer than anticipated…good news for mortgage rates!  While the Federal Reserve has indicated that rates will more than likely not be cut this year, the Federal Reserve did announce another form of Quantitative Easing!  The Federal Reserve will again start buying mortgage-backed securities this year.  As more bond buyers (The Federal Reserve) enter this market, that should drive rates down in theory.  More than ever before, it is important to partner with a well-versed lender to educate and prepare for the market we are in!

First-Time buyers have especially felt the pinch! Fannie Mae and Freddie Mac, the Federal Government Agencies who fund the conventional mortgage business, have continued to roll out and support prior initiatives to assist first-time buyers. Credits are directly available along with subsidized interest rates to help with affordability. Clients who may not possess the best credit scores and perhaps lack a large downpayment, still have options with prime financing terms.  Many of these initiatives are coupled with income limits, however. 

On the other end of the spectrum, those upgrading homes need to find ways to compete with clients who do not have a home to sell! Here at Educated Mortgage, we have developed Ca$hAdvantage! This program allows clients to write a full cash offer with guaranteed financing. Ca$hAdvantage is funded with private money, and we allow some clients to forgo selling before buying, who traditionally would have had to sell in order to buy previously!  Writing full cash offers without a contingency including  sale contingencies has aided in several of our clients’ success! Madison and the greater area continue to be a desirable place to live and work! Top talent in the workforce is being recruited to live and work here.  Medical Professionals, and in particular Physicians are moving here! 

Through the years, I have always enjoyed my partnership with Restaino and Associates! I appreciate all that you do for your clients, and together we can help folks achieve real estate goals including first-time ownership. I am fortunate to work for an Independent Mortgage Bank who is mighty enough to compete with other lenders, yet small enough to maneuver in this market.   We offer Fannie and Freddie Conventional, FHA, VA, USDA, WHEDA, Jumbo, Bridge Lending, Portfolio and Construction, Physician Financing, and Ca$hAdvantage (cash offer program with guaranteed financing)! Throughout my career, I have consistently strived to deliver top-notch service, and I am grateful for the trust and support I have received from clients and partners like you. Rest assured, my commitment to providing personalized and expert assistance remains unwavering. 

Thank you!

Joe Boyle
Sales Manager, NMLS ID: 400581

Educated Mortgage Services, LLC. NMLS: 222652

5315 Wall St., Ste. 270
Madison, WI 53718