Newsletter is now an Adult

This edition marks the start of my 18^th year writing a weekly newsletter to clients, real estate agents, and other professionals whose services interact with mortgages and real estate.  Surprisingly, over the years I’ve rarely missed a week – usually due to travel.  That’s a lot of content!

 

I’ve been asked many times what motivates me to continue doing this week in and week out.  The answer is YOU!  I am so appreciative of the genuine, heartfelt comments I receive thanking me for writing “the only newsletter I read”.  I also have tons of respect for those that read each week and take the time to opine how wrong I am at times.  Praise or vilification, making an impact on another person’s life is why I do this each week.  If I can pass on knowledge to another, I’ve done my job.

 

Thank you to all who read my newsletter – maybe not each week, or every word I write.  I want to thank each of you for keeping me going.

 

 

 

Update on Former Fed Governor Cook

This story just gets better each week.  This week, the Department of Justice issued grand jury subpoenas relating to three mortgages Former Fed Governor Lisa Cook received for properties in Ann Arbor, Michigan; Atlanta, Georgia; and Cambridge, Massachusetts.

 

In my opinion, the case is simple.  Did Ms. Cook falsely claim occupancy when applying for a federally backed mortgage?  The documents say she did.  That’s mortgage fraud, period.  Claims can be made that President Trump wanted her out and that’s what started the witch hunt - but that doesn’t matter.  No matter how much the President wanted to get rid of her, if she didn’t do what she’s accused of, she’d still be at the Fed.

 

A new development this week did put a smile on my face.  In one of her recent legal filings challenging Trump's actions, Cook said she listed the properties and mortgages on forms submitted to the White House and U.S. Senate in the vetting process for her appointment to the Fed in 2022.  Cook claims that any inconsistencies were known when she was confirmed and cannot give Trump grounds to fire her now.

 

I’m not a lawyer, but this argument is ridiculous.  Cook is claiming that because she listed the properties and associated mortgages on a financial disclosure form, she is now immune from discharge.  I seriously doubt she told senators during the confirmation process that she committed mortgage fraud to obtain the properties, and that they were okay with that.  I’d love to hear an interview with a senator saying they were aware of her actions and thought it was fine.  That argument won’t help her criminal case either.  In fact, it was the financial disclosure forms that contradict her mortgage applications.

 

My advice to Ms. Cook is not to focus on getting her job back, but to worry about not going to jail.

 

 

 

 

Hurricane Kiko – Hurricane vs. Hazard Insurance

The latest forecast for Kiko is that when it comes close to our islands it will already have dropped below hurricane strength to a tropical storm.  That still means we could have heavy rain and some strong gusts.  Today, let’s discuss some of the possible impacts your home could face and which insurance policy would cover that damage.

 

Hurricane insurance is aptly named, as it covers losses you’d experience during a hurricane.  Hurricane coverage has two requirements:

 

• The storm must be named.
• At the time of loss (damage), official wind speeds must be 75 mph or greater.

 

 

Hurricane Hits:

If the storm meets the criteria above and your home sustains damage, you will need to file a claim with the insurer that holds your hurricane policy. Most of you have your home (hazard) insurance with one carrier and your hurricane policy with another. Now would be a good time to check which insurer holds your policy. It would also be a good time to check your deductible for that policy. Hurricane policies usually have a 2% deductible, although I have seen policies with a 5% deductible.

 

Your hurricane policy will cover losses such as the wind lifting your roof or debris slamming into your home and causing damage. This policy will also cover water damage due to “wind-driven rain.” If you lose part of your roof, or the wind blows out a window, and your home sustains water damage due to rain causing flooding, that is wind-driven rain. The important term here is driven. If the wind is the cause of water damage, you’re covered.

 

What if the hurricane drops 30 inches of rain and your house gets flooded from runoff in your neighborhood? While the source of the water was the hurricane, that water didn’t enter your home due to wind. Unless you have flood insurance, you are most likely not covered for this loss.

 

 

Tropical Storm Hits:

If you sustain damage from a storm that never reached hurricane intensity, or has been downgraded and is no longer a hurricane, claims for damage will be filed with your standard home (hazard) policy. Again, now would be a good time to check which company holds that policy and what your deductible is.

 

And just like with the hurricane policy regarding “wind-driven rain,” flood damage to your home not caused by water intrusion from wind is not typically covered by your homeowner’s policy.

 

 

Here’s a good idea: When was the last time you spoke with your insurance agent? Maybe you should give them a call and ask about your policy limits and deductibles. The last thing you want is to be underinsured.

 

As many of you know, I sustained a loss earlier this year when a large tree in my yard fell. I was lucky to have the same contractor who built my house 22 years ago come back and do the repairs. As he worked with the insurance company on the estimate, one thing he said got burned into my brain: “You know Alan, if you had to rebuild your home today, it would cost double—and maybe close to triple.”

 

Don’t wait for a claim to realize you don’t have enough or the right coverage.

 

 

 

 

And now the week’s economic news…….

 

Labor Market Weakens

As many investors had been anticipating, the closely watched labor market data released this week surprised to the downside.  As a result, mortgage rates declined to the lowest levels of the year.

 

The key Employment report revealed that the economy added just 22,000 jobs in August, below the consensus forecast of 75,000.  Some strength was seen in health care and social assistance, while the manufacturing sector and the federal government reduced jobs.  As expected, the unemployment rate increased to 4.3%, the highest level since 2021.  Average hourly earnings were 3.7% higher than a year ago, down from an annual rate of 3.9% last month, and the lowest level since 2021.

 

Like the August Employment data, the latest JOLTS (job openings and labor turnover rates) report, covering the month of July, also showed weakness in the labor market.  At the end of July, there were just 7.2 million job openings, well below the consensus forecast of 7.4 million and the fewest in ten months.  The number of vacancies for each available worker was close to 1.0, down from a peak of over 2.0 in early 2022, and the lowest level since 2021.  A smaller number of openings suggests that companies face less pressure to raise wages to hire enough workers.

 

Unlike the labor market data, two other significant economic reports released this week by the Institute of Supply Management were a bit stronger than expected.  The ISM national services sector index rose to 52.0, and the national manufacturing index increased to 48.7.  Readings above 50 indicate an expansion in the sectors and below 50 a contraction.  Service companies continue to outperform, but higher tariffs on foreign goods may provide a boost to manufacturing companies over time.

 

 

 

 

 

Next Week

Looking ahead, investors will continue to watch for additional information about tariffs and monitor comments from Fed officials for hints about monetary policy later in the year.  For economic reports, the focus will be on the inflation reports.  The Consumer Price Index (CPI), a widely followed monthly inflation indicator that looks at the price changes for a broad range of goods and services, will come out on Thursday.  Before that, the Producer Price Index (PPI), another monthly inflation indicator, will be released on Wednesday.

 

Until next week….

 

*** Please note that Freddie Mac publishes their weekly rate report on Wednesday mornings from data received Monday and Tuesday. 

The graph above is intended to shown rate trends, and not “today’s current rate”. ***

 

 

Reviews From Our Past Clients

With every client, we promise to provide you with a comprehensive analysis of your mortgage needs, the best service possible, and the best rates we can find.  We make it our mission to have every transaction close with our clients happy with the service we provided.  Browse through the hundreds of reviews we’ve received from our clients posted on both Google and Zillow.com, and read what they thought of their experience using Hawaii Mortgage Company.

 

 

Google Link:

Hawaii Mortgage Company Review on Google.com

 

 

Zillow.com Link:

Hawaii Mortgage Company Reviews on Zillow.com

 

 

 

Our Rate Quote System is Available to You

Our automated rate quoting system is live.  Now you can check rates and try different scenarios 24-hours a day.  Remember, it’s just a computer.  For non-standard rate quotes, such as construction, vacant land, and other specialty programs, you’ll still need to give a call.

 

Here’s the link:      https://www.hawaiimortgage.net/todays-rates/

 

 

Do you think all lenders are the same?

There is a difference when you use Hawaii Mortgage Company for your financing.  Here’s a short video telling you why:

 

https://youtu.be/c7AKQ5wa2_U

 

 

 

Broker vs. Banker?

Click the link below to get a quick lesson on why working with a Mortgage Broker will benefit you on your next transaction.

 

https://youtu.be/iH3igW5v2jE