News and Insight

For the Weekend of August 1^st, 2026

Hawaii’s Most Read Mortgage, Real Estate, and Finance Publication for 18 Years

 

Volume 18 – Issue 43

The Best Mortgage Professionals Know When to Admit Defeat

I’ll be honest about something few professionals will ever tell you - why they chose their career path.  I originally got into the mortgage industry because it was lucrative.  But in short order, I realized something special about what I was doing.  The first time I saw the happy thankful face of a client who just got the keys to their new home changed my perspective.  At that point I understood that assisting someone achieve homeownership was truly special.  Over time my priorities changed.  And as I focused more on helping people, I got better at my trade.  Then a funny thing happened.  I didn’t have to worry about the money.

 

I bring this up because there are too many in the mortgage industry that are solely laser focused on making money.  You see it in all forms.  From the deceptive “you’re pre-approved“ mailers, to the random spam texts, to the calls out of the blue soliciting a refinance.  These ambulance chasers are usually easy to spot and avoid.  But what happens when you actually need a mortgage to either buy a home or refinance.  How do you know the person at the other end of the transaction has your best interests in heart, versus their bank account?

 

Too often when discussing mortgages, all the focus is on rate and the cost associated with getting that rate.  Today I want to focus on the ability of the lender you chose who can actually come through in the end.  You see, when a lender can’t finance your transaction, they don’t get paid.  That incentive often creates issues with difficult, or even seemingly easy applications, where the lender really can’t complete your loan – they just don’t want to admit it and walk away empty handed.

 

Why can’t a lender close your loan falls into two distinct categories: First, the borrower was never really qualified, and the lender’s representative lacked the training to see that early on.  The second is that the lender chosen either lacks the specific loan program needed by the client or has internal rules prohibiting lending to the client that another lender doesn’t have.

 

Let’s address the first issue – the borrower was never really qualified.

 

Lending guidelines are long and extremely thorough.  Sadly, most in my industry never read them.  These guidelines are the roadmap to exactly how the borrower’s application will be scrutinized by an underwriter.  I’m an information junkie.  I feel the more I know, the better I can perform my job.  I quickly learned that early on to spot potential issues with an application.  If you can spot issues early, there may be a way to change course and get the client the financing they requested.  But in many cases, the borrower just can’t qualify.  Maybe they’ve been self-employed for too short a period of time.  Maybe a portion of their pay is through restricted stock options that most lenders can’t count as income.  Or maybe they just don’t make enough.  It might not even be the applicant.  Especially now when times are tight, I’ve seen more applications from people wishing to buy “fixer-uppers”.  Yes, there are programs for that, but it requires higher down payments.  Or the house may be more of a tear-down than they think.

 

Whatever the reason, I always find it beneficial to let the client know right away if there’s issues.  That’s not the case with all mortgage Loan Officers.  I can’t count the number of times I’ve received a call where the person said they were just informed their lender can’t come through and have a week left on their contract deadline.  Since most contracts have a 45-day close, why did it take 40 days for the lender to make that determination?  The answer can only be that either the mortgage representative was oblivious to any potential issues (lack of knowledge) or prayed a solution would present itself and protect the income that mortgage person was counting on.

 

The second way your loan may not close has to do with either the lender not having a program to fit your unique situation, or that lender has internal guidelines that prohibit them from providing you financing.  Please understand that not every lender is the same.  Each decides the types of loan programs to offer and how much risk they wish to take.  Not every lender offers every loan program available.  Also, one may require a higher credit score or other internal qualification for the same program other lenders offer.

 

I recently got one of those calls from a person who was 7 days out from their scheduled closing date.  He reached out because he was getting extremely nervous.  The tell-tale signs were there.  The lender kept asking for more and more documentation yet never issued a commitment.  I agreed to review everything his current lender had, to see if I could help.

 

Based on everything the borrower provided to his current lender I determined that there was no way he was going to get approved.  I spent the weekend trying to come up with a solution.  I felt determined.  This family was moving from the mainland and the kids were already enrolled in school.  They had to make this work and were willing to do whatever it took to get across the finish line.  Yet, I was so frustrated.  Every loan program I researched, every way of looking at their income, I came up empty.

 

It was my lucky day the following Monday that I got an email from a lender with a new program that fit their situation perfectly.  From the day the transaction was officially transferred to my company, we closed in 25 days.  Yes, it was lucky, but it makes the point that not every lender is the same, nor does every lender have the same loan programs.  And if you are using a mortgage broker, not every broker is affiliated with every lender.

 

If you are or will be in the process of obtaining mortgage financing, look out for the warning signs: unanswered emails, delays in returning your calls, no clear answers to your questions, endless requests for more or new documents, or missed deadlines.  When working on tight timelines like we do in real estate transactions, you don’t have time to sit by and hope everything is okay.  You need to get in touch with your loan representative and ask them straight-up if there’s issues.  The response you get will determine if that person is working for your best interest, or counting on a paycheck.

 

 

 

 

 

 

And now the week’s economic news…….

 

Fed Holds Steady

Mortgage rates saw a bit of volatility this week, driven largely by fluctuating oil prices and ongoing tensions in the Middle East.  The latest economic data had little impact on financial markets, and the Fed meeting revealed no significant surprises.  Mortgage rates finished the week slightly higher.

 

As expected, the Fed left the federal funds rate unchanged on Wednesday for the fifth straight meeting at a range of 3.50 to 3.75%, and the meeting statement was nearly identical to the prior one.  Of note, three of the twelve voting Fed officials dissented from the decision, preferring to raise rates by 25 basis points, an unusually high level of disagreement.  New Fed Chair Warsh continued to emphasize that future policy decisions will depend on incoming economic data rather than providing specific guidance.  Earlier this year, many investors expected the Fed to cut rates further, but expectations have shifted, with markets now anticipating at least one rate hike before the end of the year.

 

One of the Fed's favorite inflation gauges, the Core PCE price index, showed modest improvement.  In June, core inflation rose 3.3% from a year ago, down slightly from an annual rate of 3.4% in May.  Progress toward the 2.0% target of the Fed has been challenging, and this desired level has not been seen since early 2021.

 

Gross Domestic Product (GDP) is the broadest measure of economic activity. During the second quarter of 2026, U.S. GDP grew at an annualized rate of 1.5%, below the consensus forecast and down from 2.1% in the first quarter.  Consumer spending and business investment remained solid, with much of the business growth tied to continued investment in artificial intelligence.  However, lower government spending and reduced business inventories weighed on overall economic growth.

 

Bottom Line: Markets continue to balance mixed economic data, persistent inflation, and global uncertainty.  While inflation has eased gradually, it's still running above the Fed's target, keeping policymakers cautious.  For mortgage rates, expect continued daily volatility as investors react to inflation data, Fed commentary, and geopolitical developments.

 

 

 

Next Week

Looking ahead, attention will remain fixed on the conflict in the Middle East and the proposed deal to ease tensions.  Investors also will monitor comments from Fed officials about future monetary policy.  For economic data, the ISM national manufacturing sector index will come out Monday and the national services sector index on Wednesday.  The key Employment report will be released on Friday, and these figures on the number of jobs, the unemployment rate, and wage inflation are always closely watched.

 

 

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