The following program. The ENT , mortgage and Realty Show is paid for in full by ENT mortgage, LLC and equal housing lender consumer access.org number 2 5 5 3 6 8. The advice and opinions expressed during the ENT Mortgage and Realty Show are solely that at the hosts and guests of ENT mortgage, LLC, and not WTMJ or Good Karma Brands.
Speaker 2:Welcome to the Accu Net Mortgage and Realty Show, getting you inside information on buying, selling, and financing your home with expert advice from Accu Net Mortgage and Realty. And now here's Brian and David Wickers. Alright, good morning.
Speaker 1:I'm Brian Wicker, the licensed real estate broker with Akon Realty Advisors and the maturity owner of the mortgage company, along with my son David, who's the mortgage company's chief client experience officer, and very active senior loan consultant as well. Also a non-practicing licensed and unaffiliated real estate agent. Do I have that right, David? Yeah . Yeah.
Speaker 3:Real estate salesperson. Sure.
Speaker 1:Yes, you have the sheepskin, but you're not , uh, actively practicing. You got the book knowledge, as we say. So if you've got a question or a comment, you can call or text us on the Old National Bank Talk and text line, which is 8 5 5 6 1 6 1 6 20 Old National Bank. Get old. You can also grab a podcast at today's show anywhere you normally get your podcasts. All right . So we've had a string of four Sundays off as our Green Bay football team has had four noon games in a row. And what a pleasure it is to be having a show today , uh, uh, basking in the glow of a Thanksgiving Day victory.
Speaker 3:Yes. And so far my fantasy team hasn't disappointed me yet, so it's a , it's an okay. Start to a Sunday.
Speaker 1:Okay, fantastic. I'm also going to the Bucks Game this afternoon, so hopefully it'll continue this frequent . Mom and I went on Friday. We're just like, bucks game a holics here, so should be a good game seeing the Portland Traille Blazers in town. Alright , so since we were last on the air the last time we were on the air, David , uh, we were reporting a peak 30 year fixed rate mortgage of 8.03%. Ouch. The takeaway from today's show, in case you don't have time to listen to all of it, is rates are down. Mm-Hmm. <affirmative> inventory's up a little bit. And if you can find a home, you like buy it Now here in winter, there is no reason to wait, is the message of today's show. Um, and , and so that 8.03 peak rate was reported by Mortgage News Daily, which is our new favorite. We don't like the Freddie Mac survey anymore because it's done on a rolling three week basis and therefore fail to even capture the peak interest rate. Yes, sir.
Speaker 3:I was thinking about this. The mortgage news daily is, what is the weather right now? Freddie Mac is, what was the average weather the last three weeks? Perfect . That doesn't help me at all.
Speaker 1:Exactly. Perfect. Uh , now the markets were only open a half a day on Friday, so I'm going to give everybody a rate update based on where rates were at the end of Wednesday. 'cause that's our benchmark from , uh, mortgage News Daily, where they reported a 7.32% rate with 25% down in like seven 80 credit. Okay. So , uh, <inaudible> at the close of business on Wednesday was able to offer 7.125 with no points and no other lender fees like underwriting processing, originating tax service. I saw a loan estimate from a big national lender, David. They had $1,900 of lender fees, not including points. Wow . Which you pay for the lower rate. So be careful of that. Uh, most lender I would say ACU net is a outlier in that we only have, you know, four things that you pay for appraisal, credit report , uh, title insurance and closing . And then if you want a lower rate, you pay points. We don't have an underwriting fee. We don't have a, you know, shuffle the papers fee, none of that stuff. Alright. We could also once again offer the trophy , uh, trophy rate, David 6.99. Never thought I'd say that
Speaker 3:Sounds so good compared to 8.03.
Speaker 1:Yes, it does. And that was a 30 year fixed rate with three tenths of a point and no other lender fees. That would be on a purchase price of 500,000 with 25% down annual percentage rate, which spreads those three tenths of a point out over the whole 30 years would be 7.03. So we're about a percent lower or Oh yeah . You know, from where we were a month ago. That is remarkable. I bet you're wondering what does that translate into a payment, David ?
Speaker 3:Well, of course. 'cause with the , you know, with the higher rate it was gonna be a , a higher monthly payment. But now with that relief, what is that on a month to month basis? Well,
Speaker 1:On a , on that same $375,000 loan, $500,000 purchase with 25% down 259 bucks a month. Yeah. That's a big dip. And and if you wanna translate that into purchasing power, that's about $45,000 more house that you could afford for the same monthly payment now versus a month ago. So this is, so
Speaker 3:Yeah, if you were stuck at a, oh, I want that payment, you were only buying a $460,000 house. Yeah. But now with a little relief in rate, you're stretching all the way up to 500 maybe. Yep . Yep . For the same payment. Yeah.
Speaker 1:Now we also have , uh, a radio ad running for our special first time home buyer money that I got a change again. 'cause the ad says 6.625% is the rate. Well, that dropped to 6.375. Uh , on , on Wednesday. Uh , the maximum, oh by, oh by the way, the APR on that because most first time home buyers put less than 20% down. The minimum down payment on that program is 3%. And so when you bake in the PMI, if you have really good credit, that makes the annual percentage rate 6.55. And by the way, the PMI stay , PMI stays on the loan for 12 years before it automatically drops off. Maximum household income for that special first time money is $99,900 if you're a one to two person household in the five county metro area or up to $114,885 for households of three or more. And so that's always our first stop if you're a Wisconsin first time home buyer is can we fit you into that program? Oh yeah . And a lot of people do. Not everybody but a lot. And we have other special , uh, programs as well. But in general, things are getting better. David, why did mortgage rates stop going up? 'cause it seemed there for a while . It's like 9%. Here we come. Why , why , why the reversal?
Speaker 3:There was, was it late October? Uh , or, well, in early November, I think the markets third markets decided. Yeah. Markets were , uh, a new inflation report came out and we all agreed, man, I think we really are defeating this inflation thing. Uh, and that continued to bring rates down because as you've pointed out many times, inflation is the enemy of interest rates. And if we can defeat inflation rates will come down.
Speaker 1:Whip inflation. Now that was the Richard M. Nixon , uh, win win , uh, campaign strategy I think in 1972 or something like that. Anyway, let's talk about where the experts think interest rates are headed when we come back. You are listening to the Academic Mortgage and Realty Show on AM six 20 WTMJ
Speaker 2:Home buying advice from the guys who know it best. This is the ACU Ed Mortgage and Realty Show with Brian Wicker on WTMJ. Okay.
Speaker 3:Welcome back to the AED Mortgage and Realty Show. I'm David Wicker. That's Brian Dad. I was watching the Thanksgiving Day parade on Thursday. Yeah . And Chicago was on a float. No . Or at least their bodies were, I don't know if their spirits were still walkers in their bodies. Okay.
Speaker 1:I've seen them lie. Yeah . Lying something on the floor. 25 or 6, 2 4. That was something about the time. Okay. So , um, we , we have a downward trend here in, in the month of November in mortgage rates , which is very welcome. And the first thing that helped it start moving in the right direction was the jobs report. On November 3rd, the economy only produced 150,000 jobs against an expectation of one 70, but then they also revised the previous two months job creation figures downward. So it's like, Hmm , okay, that seems like it's going in the right direction. And then average hourly earnings. So in other words, wage inflation , uh, rose just 0.2% from September to October and 4% year over year . So that seems to be under control. Interesting nugget, David. The average hourly earnings is now 34 bucks an hour. And so , uh, average work week is 34.3 , which makes an annual average earnings penciling out to 60,642. You got a comment?
Speaker 3:No. Well, so , so a lot of this interest rates are reacting to this data, right? Yeah. So we got some nice positive data and or
Speaker 1:Positive inflation
Speaker 3:Friendly meaning right infl , right inflation defeating data. Yes . Well, if it were every month that data refreshes. And so while we are hopeful and you're gonna share the forecast, while we are hopeful that the December data and the January data will continue this inflation defeating trend, it also might not. You never know.
Speaker 1:Yeah. Yeah. And , and the Federal Reserve remains.
Speaker 3:So something about burden of hand, I mean, I know it's snowing, but there are still birds out to burden the hand about rates . Hungry birds . Yeah.
Speaker 1:So, so , uh, if, you know, and the whole problem folks is if you're a lender and you're lending money at seven and a quarter fixed for 30 years and inflation were say stuck at six and a quarter, you are only making a 1% return. And that is not an acceptable return. That's why inflation is such a big problem and why it affects , uh, mortgage rates so directly. So the good news is all the smart people think that mortgage rates are gonna come down. Although there is a widening difference of opinion as to how much and how fast. I went to the Wisconsin Mortgage Bankers Conference in late October where Dr. Mark Epley from the UW Madison School of Business gave a great presentation, very compelling. Statistically, he's also on the Federal Home Loan Bank of Chicago's board and has been for a number of times, times. And he made this statistically compelling argument that mortgage rates are about one to 2% higher than they would otherwise be. All, all , all other things being equal. And part of it, he said, is because the US Treasury has so much debt to finance Mm-Hmm . <affirmative> that, that is putting a lot of supply for interest bearing investments out there in the market and there's a limited demand. Right. And so buyers of US treasury notes and bundles of mortgages
Speaker 3:Are like, they're , it's like Thanksgiving for buyers of, of of debt. Right . They're like, it's a horn of plenty . You want me to of cookies ? It better be a really good cookie.
Speaker 1:That's right. So they're , they're , you know, Hey, make me, make me offer me a higher yield if you want me to buy more of this stuff. Um, yeah. But then the latest forecast comes out from Fannie Mae and they say, Hey, we've dusted off our crystal ball and we think rates are gonna average 7.7 here in the fourth quarter. Oh wait, they just looked out the window. Yeah . And said, yeah, you know what rates are right about now. Yeah. Uh , but then they think it's gonna go , uh, to 7.1 by the end of 24 and then now down much further to 6.8 at the end of 24. Mortgage bankers on the other hand, they are much more optimistic. They just came out with their forecast on the 17th and they are a full 1% more optimistic. They see the rate dropping to , uh, 6.6 by April 6.3. This is in the 30 year fixed by August and 6.1 by the end of 24. So full percent lower than Fannie. And then by the end of 25 they have the mortgage makers do the 30 year drifting down to 5.5 Ooh . From their lips to God's ears. Alright, when don't we come back? Let's talk about why it's better to work with a boutique , um, mortgage lender like acuate than some big national company. We've got a couple of stories where we're coming to the rescue. Uh, you are listening to the Audet Mortgage and Realty Show on AM six 20 WTMJ
Speaker 2:Getting you into the home of your dreams. Here's more of the ACU Net Mortgage and Realty Show with Brian Wicker on WTMJ.
Speaker 1:Alright , we're back. I am Brian Wicker, the elder. That's , uh, David Wicker, the younger over there. And , uh, we were just talking about how rates have come down and the smart people think they're gonna come down either a little or a lot. And when we come back after the news, I've got some numbers to share as to why you still should not wait. Because I think some people go, well, hey, if rates are gonna be coming down, then let's wait. I , by now, I got a really good compelling argument for why I shouldn't do that. But in the meantime , um, got a call from some good loyal customers. I think I counted up in the last nine years. We've done 11 transactions for 'em only, or maybe it was the other way around 11 years, nine transactions. He was either
Speaker 3:Way.
Speaker 1:And , um, we helped 'em on their Wisconsin primary residence. And then we helped 'em back in 2019 by their first , uh, second home condo in Florida , uh, middle of Florida, which they did for 130,000. I I I looked that up. And at a , at a low low rate of 4.625, take that, wouldn't we
Speaker 3:Smoke it?
Speaker 1:Bring that back. And then they sold that one for about 154,000, almost a 20% gain in 2021. And they bought a bigger condo for 235,000 at a rate of, are you ready? 2.875 on a 30 year fixed rate. Ooh . mm-Hmm. <affirmative> <laugh> . And now they are fixing to give that up. Uh , 'cause they are gonna now make Florida their primary residence. And so they've sold their Wisconsin primary residence this last summer and they are gonna buy a new construction single family home in a planned unit development near Tampa. Do you wanna say , uh, for just under 600,000. So these people are gonna flush their 2.8 7 5 30 or fixed street right down the old Lou . And, and , and now they're fixing to buy at just under 600,000. Do you have a comment on that? Son ?
Speaker 3:It's hard to get a tan , uh, under the glow of your interest rate, but sunshine is more fun than whatever your interest rate might be . Is that the reason? Yeah .
Speaker 1:And you get more space. And what's a pud what's A-P-U-D-A planned unit development for those who don't know what that is?
Speaker 3:Um, it is a, I'm gonna say it's just a very organized neighborhood. You know, you probably have a lot of common spaces. Uh, the
Speaker 1:Homes , the mow
Speaker 3:Probably are all of a certain structure and style. Yep . Homogenous.
Speaker 1:So this, this is what, you know, Florida's all about a lot of gated communities, A lot of plan unit developments. This one that they're buying in happens to be a 55 and older community. Uh , Dell Webb is the developer, which is a division of Pulte Homes. And so back in April , uh, uh, Tom called and said, Hey, we're gonna do this. We're gonna buy with Dell Webb in this plan unit development, love to finance with you.
Speaker 3:Seven months ago. Yeah .
Speaker 1:He called but Brian Yeah. They are , uh, offering us a $25,000 credit if we use Pulte mortgage. I'm like, whoa . I'll you like a brother man. But you gotta, and it's not gonna be as good an experience. No, but you cannot pass up on that kinda ,
Speaker 3:You know what that is? That that's a , it's a tax is what that really is. Or what it'll feel like it's 25,000 bucks, but you're going to hate the mortgage experience elsewhere.
Speaker 1:Well, and and so he calls me then on November 13th and says, okay, we're three weeks from closing. We got our fi our settle , we have our firm closing date on December 7th. Yeah. And now the sale of our Florida condo has fallen through and they were gonna take the proceeds from their , uh, home sale in Wisconsin, plus the proceeds of their home sale in Florida put $400,000 down and finance 200 with Pulte mortgage. Well now all of a sudden they get word three weeks before closing sale of their condo's falling through. So they need to increase their loan amount. He said, I'm on the phone with my loan officer from Pulte Mortgage and it's not getting through to him . He's like, no, we verified that you've got way more than enough money. 'cause they had verified his very large brokerage account. Yeah . But he , the , the loan officer wasn't understanding. I do not want to touch that money because if I sell stuff in there, I will suffer a thing called capital gains tax. 'cause I have all winners in that portfolio. Oh yeah. I don't have any losers to offset if I were to sell that. So I want to, basically
Speaker 3:My mortgage , I would like to borrow more money please.
Speaker 1:Right. From 200 up to like 3 89. And finally it got through to the guy. Oh, by the way, also, they kept still putting their old Wisconsin address on all their paperwork, even though they had told him three times we sold that property wasn't getting through. And , and so I said, send me everything that they have. So he sent me the loan application that they had in place with Pulte and, and the loan estimate , uh, of all the closing costs. And, and that's when I, I looked at what they were using for income and I said, Tom, these people aren't smart enough to know it yet, but they cannot approve you based on the income that they have listed on your application. They will not be able to approve your loan at $389,000. And they're probably not gonna figure that out for another 10 days. Alright. So it's time for us to tell
Speaker 3:'em you got , there's more on this dude . There's
Speaker 1:A cliffhanger. Folks we're gonna tell you , as Paul Harvey used to say the rest of the story right after we hand it over to Jack Grower in the 24 hour news,
Speaker 2:Don't break the bank to get into a house. Back to the ACU Mortgage and Realty Show with Brian Wicker on WTMJ.
Speaker 1:Thanks for tuning in. I'm Brian Wicker. That's David over there. David, you were say , telling me on the break, we're not in the mortgage business. What?
Speaker 3:We're in the No, we're in the solving problems business because you know, your client, you're , you're 10 times in the last 10 year client calls to , I mean, can you imagine the conversations they were having nervous before they called you? You know, 'cause they're closing on their house in three weeks and they don't a loan commit . They probably really wanna move in. Right.
Speaker 1:And and they do not have a loan commitment and they wanna double their loan amount. Yeah. And , and on top of that, they had already waived their financing contingency in order to incent the builder to , um, begin building six months ago. I mean , so other than that they were flying without a net . They,
Speaker 3:They would've, I mean they would've been fine. You know, push comes to shove. They could have stroked a check. Yeah . They didn't want to . That's
Speaker 1:Right.
Speaker 3:Correct. Yeah .
Speaker 1:Alright , so, so , alright . Yeah .
Speaker 3:We're in the , we're in the problem solving business and they called, they called their chief problem solver, Brian Jay Wicker. And we're like, Brian, please help.
Speaker 1:Yep . Please help. So we, we had a conversation. Good news is that it turned out not to be a $25,000 credit for using the mortgage company. It was only 10. So they got to keep the 15 grand of the 25 total, but they were gonna now lose their 10,000. They were also unlucky enough to have locked in their rate. Right. When rates were at their peak at the end of October. So 7.875 with paying three quarters of a point and puling mortgage would not budge. They're like, no, the rates haven't come down that much. Like Yeah, they have. So what we ended up , uh, engineering I'll say is to say, look it , you guys have plenty of money. Um, what we're gonna do is give you not as lower rate as we could. What I thought it was all about getting the lowest rate. No, we're gonna give you a lower rate. We ended up going with a 7.625 rate. But because of the improvement in mortgage conditions, we're able to now give them a $7,000 lender credit. Holy cow.
Speaker 3:Okay.
Speaker 1:So now they're only giving up three grand. Right? 'cause they had 10 grand if they were gonna close with the un you know, at the 7.875 with three quarters of a point and no certainty as to whether they were gonna really close with
Speaker 3:That money. That is the three, $3,000 is the , Brian takes my phone call , uh, you know, cost And they are pleased as punch, I'm sure. Absolutely. They don't care. Yeah.
Speaker 1:Okay. Oh , because guess what? That was on the 14th of November when we kind of came up with, you know what, we gotta act on this. We had 'em , their commitment letter on the 21st, seven days later. Now it is still subject to the appraisal, which we should have in our hands this coming week still . But it's a big down payment and it's not really a concern. So we got her done in a week. Not bad. And, and you know, we don't wanna do that every time. Right. But it's possible if we have a cooperative client , um, we can get things , uh, done in a big hurry. So I'd like
Speaker 3:To say my other metaphor, can I just say Yeah , mortgage lending is a lot like carpentry that just 'cause you hands , just 'cause you hand somebody some two by fours doesn't mean that they know how to put it together and make it look pretty. It's not. It might all be called carpentry. Sure . But , but there's a master carpenter . Yeah. When they handed you, you just said you got it done in a week. Right. Well it's not that the puzzle was particularly brutal, it's just that the other carpenter didn't know or couldn't understand. No, I don't want my mortgage put together this way. And and they handed all the pieces to you. Correct . And you were like wham, bam and all .
Speaker 1:Ultimately they did go forward and issued the paperwork at the higher loan amount, but they still hadn't solved the problem of do they have enough income? Because remember on the big mortgage company's application, from what I could see, 'cause they sent it to me , uh, the customers did, they didn't have enough income to qualify at the higher rate . So after we quickly gathered all the information, we determined , uh,
Speaker 3:That is such a low threshold. You, I mean you literally just described that the mortgage lender didn't realize, Hmm . If they wanna borrow more money, there might need to be more income
Speaker 1:To Right. Do I have enough income on there that it didn't even seem to dawn on them? No. That this could be an issue. One other thing though, so when they sell their home, 'cause remember now I'm gonna lend 'em money at 7.625. So when they do eventually sell their condo in Florida and get $180,000 of cash proceeds, I I'm telling my friend , uh, you need to pay down that mortgage balance 'cause you have plenty in this case, these people have plenty of other money in retirement and non-retirement. So when he comes into this $185,000 , I'm saying in Brian Rickard's opinion, the best thing you can do with that money is reduce your mortgage balance. Because that's like getting a bond at a 7.625 yield, which is rockstar
Speaker 3:Is not paying the interest is as good as
Speaker 1:Earning interest. As making interest. That's right. And so we're gonna help them pay down the balance and then re amortize the payment to enjoy the lower payment. And then he's also due to get a , um, inheritance sometime in the next several months. And so at that time, we're gonna help 'em pay off the mortgage. And , and all very carefully, we should say out loud , we get burned as a mortgage originator if loans go away in the first six months. And, and so in this particular case, we're gonna help these folks extinguish that mortgage debt but in a timely manner that doesn't kill acuate . Yes. Alright . Uh, David, you've got a story also happens to be a Florida customer where you help solve a problem. But before we do that, when we come back, let's go over the October MLS numbers, real estate sales numbers because in there is a compelling reason why people should not wait to buy. You are listening to the ENT , mortgage and Realty Show on AM six 20 WTMJ.
Speaker 2:Important home buying questions and answers you can count on. This is the ACU Net Mortgage and Realty Show with Brian Wicker on WTMJ.
Speaker 1:Alright , here we are coming to last weekend of , uh, last week of November. But we do have the October real estate sales. And this is according to the multiple listing service here for the Greater Milwaukee Association of Realtors, of which I'm a card carrying member through ACU net Realty Advisors. And we're looking at the five county single family detached and condos combined. Uh, David, in October sales were down only 3.4% or 54 sales. There were 1,540 happy buyers and sellers who exchanged the keys. Now what's the key question when I tell you it was down 3.4%? Well , yeah.
Speaker 3:Uh , com compared to when
Speaker 1:Aha . That was compared to October of last year. If you wanna compare it to October of 2019 before the pandemic screwed everything up sales are down 19% or 351 units. Yeah . So yeah, it's not normal. It's just a , a rerun of last year's not so good. October, the good news is that there were 1,808 new listings that's 264 more listings than sales . So when I said earlier in the show, hey, inventory's growing a little bit. Mm-Hmm . <affirmative> . Um, however, the 1,808 was 48 fewer than October of last year. And it was oh , 18% fewer than October of 2019. So there is still a relatively large shortage of listings. The median sales price 3 0 5 for the five county metro area that's up 20,000 bucks , uh, compared to a year earlier. And it's up Woo , 35% , uh, or $79,000 from four years ago . Yes sir.
Speaker 3:I just, I just had it handy here. I know we were poo-pooing the Freddie Mac survey. Yes . But , uh, October of last year rates were floating at the 6.9. Yeah. October 13th, 2022. 6.92% last year. Which which just to your on home values, which thankfully I haven't heard this in a long time. Oh , I think home values are gonna come down. Well, not in the last year. If you thought rates at 6.92 in October last year was gonna bring home values down. Yeah . Or 20,000 bucks later.
Speaker 1:Yeah. And, and you know, remember, so there was some articles and interviews this last week that I caught online getting ready for the show this morning. Mark Zay , who's super smart guy, chief economist for Moody's, he also sits on the board of Mortgage Guarantee Insurance Corporation or MJIC Investment Corporation here in town Large PMI company. He is saying he thinks there's gonna be some dip in home values on a nationwide basis. Okay. So you , you gotta keep in mind that all real estate like politics is local and , and there's nothing here in Wisconsin that I can see, at least in the metropolitan areas. Uh, maybe it's different in rural Wisconsin, but in the metropolitan areas, demand is gonna continue to exceed supply of existing homes. We just, of, of the , uh, 1,808 new homes. Right. I kind of did a little , uh, uh, research. Guess how many new construction listings there are on the MLS in Milwaukee and Waukesha County right now? All prices.
Speaker 3:11
Speaker 1:<laugh> . Now there's 101. So , but you know that , that's compared to a universe of like 1,777 for, for all single family homes. So we have, we do not have what other metropolitan areas have. Uh , and by the way, only two homes , uh, were under 500,000. Uh , another third of those new construction homes were in the $500,000 range. Another third was in the $600,000 range and everything else was way above. Mm-Hmm . <affirmative> , you got a comment on that.
Speaker 3:This ties together with what you said earlier in the show. Hey, if these big forecasters , uh, if their prediction on what rates do comes true, what do we all think is gonna happen to supply and demand? Uh, let's just say in springtime there buyers are going to return and the competition will stiffen once again. Yeah .
Speaker 1:And , and so we're not getting a big supply of new construction homes here in Wisconsin. We're also that , you know, if rates come down another half percent, that's not gonna make a gob. More people list their homes for sale. Uh , lemme ,
Speaker 3:I'm , you let , let's just make up a number. If, if rates come down , uh, you know, a hundred buyers return to saying, I would like to buy, well, how many sellers, you know, for every a hundred buyers, how many sellers decide to dislodge, you know, and way fewer and list Right. 12. So that balance, so here's my imbalance will remain,
Speaker 1:Here's my statistical argument for why you wanna buy right now. In the depths of , uh, winter , uh, in October, 48% of home buyers paid over asking. Okay, that compares by the way, with 40 , uh, 5% last October. But now here's the trend line. In December of last year, only 36% of people paid over asking in the five county metro area. Then it, it hit its Nader N-A-D-I-R low point Yeah . Of 32% in January of last year before starting to climb up to 50% by March. And then back to the good old Spring where it was 64% of people paid over asking in , uh, may, June and July. Alright , when we come back, David, you've got a , a problem solving story that , uh, you're gonna share with us. Maybe a couple , uh, we'll get to that right after this. You are listening to the Acuate Mortgage and Realty Show on Wisconsin's radio station. Heard all the way up to Green Bay, where my brother David is listening right now.
Speaker 2:W-T-M-J-W-T-M-J-W 2 7 7 CV and WKTI HD two Milwaukee from the Annex Wealth Management Studios. This is News Radio . W-T-M-J-A Good Karma brand station. Find a place to call home without the headache. This is the Acura at Mortgage and Realty Show with Brian Wicker on WTMJ
Speaker 1:And also the younger, taller, more handsome David Wicker. And so this next story comes to us from , um, a Wisconsin guy who relocated to the Orlando area and became a real estate agent like his dad in Wisconsin. And so we ended up doing his loan when he first moved down there 'cause he was in another industry. Um, and , and , and then he's been referring us , uh, buyers and especially buyers that run into trouble. So there , what was the initial problem that we helped these buyers , uh, overcome David?
Speaker 3:So yeah, so the initial problem was, so these buyers were moving from the New England area down to the Florida area and were taking new jobs , uh, with their geographic relocation. Their bank was requiring them to be on the new job for 30 days before they would use that new job as income to qualify for the mortgage.
Speaker 1:How old fashioned of them?
Speaker 3:How old fashioned? And I just, I just pulled it up . Nay , nay , nay . If you accept an offer letter for a new job in the same industry. Mm-Hmm. <affirmative> make it makes it smoother when it's the same industry. Not required, but I'm telling you it's a lot smoother. Right. So long as your job starts within 90 calendar days of when you are sitting down to buy the house.
Speaker 1:Yes
Speaker 3:Sir. We can put that income on the application as if you've been there for years and years and years and years.
Speaker 1:Sounds crazy when you see it. But I know it's true. 'cause we helped the other buyers of Nick, the realtor in Orlando with the same situation. So that's how they came to us, is they needed us to do waive our future income wand. And we But then what happened?
Speaker 3:Well, so, so they decided, I think it was just coming to GI think they changed their mind about the specific Florida home that they were looking at. Okay. So the, the transaction we got introduced to did not proceed. But once they talked to the problem solvers at academic mortgage, they were like, when we met , we're gonna call you when we picked this back
Speaker 1:When we find the next one. Yep .
Speaker 3:Well, so they , uh, so one of the borrowers , uh, continued to interview and you know, I stayed in touch with them and she got a offer letter for a new job, which then, you know, 'cause that was the last piece of the puzzle. They had the money, one of them had a job 'cause it could transfer. But the last piece of the puzzle was the other spouse needed to have a new job. Okay. They, they got that and their house hunt picked up rapidly after that. Okay. So, so they , uh, fly down to Florida and uh, find new construction. Oh,
Speaker 1:New construction. But it must have been far enough along.
Speaker 3:Okay. Yes. And got under contract. I think it was the, like first or second day of November. And so like it's, this is the most slam donkey , uh, transaction. 'cause we've got one of them's on salary and got transferred. One of them's got this new job, new job. Their down payment is from the proceeds from the sale of their home. They've got great credit. It's like this is the most, like we got this all day long part of mortgage lending. The big part of mortgage lending is verification. Yeah. And so we got the PDF of the new job. We said fantastic. You're gonna make this 40 hours a week, you're starting on this date. We then begin to reach out to the human resources contact to be like, hello. We have the PDF underwriting requires, you know, independent acknowledgement confirming all
Speaker 1:These details . We just can't take , we just can't take the PDF because somebody could cook that up.
Speaker 3:Exactly. One day goes by, no reply. Two days go by, still no reply. And I'm like, can you, Hmm . Like the HR person isn't getting back to us. Strange. Who's the like manager that you spoke to? You know, you probably interviewed with both HR and the manager. Day three goes by still no reply. At some point I David pick up the phone and call one 800 this company.
Speaker 1:I'm like , which is a big company you told me.
Speaker 3:Yeah. They're probably a thousand people. Okay. And I'm like, can you put me in touch with someone in the human resources department? 'cause you know, here's what we need from you. And, and uh , her name was Debbie . Debbie was a rockstar on the front lines at this company. Okay . Another day goes by, I email again, another day goes by and at some point the HR person reaches out to our client and says, I really apologize. I cannot find you anywhere in our system.
Speaker 1:What ?
Speaker 3:And it appears unfortunately that our borrower was the victim of fraud. That someone pretending to be this company interviewed her. She supplied all the information for a background check, date of birth, social, all that jazz.
Speaker 1:Oh, that old .
Speaker 3:And this job that she accepted was not real. The company was real. The job was not , not that
Speaker 1:Job . So how did you fix this?
Speaker 3:So we go or can you fix into problem solving mode and we add mom as a co-signer to this purchase. Okay. Like, 'cause will both borrowers eventually find a job? Yes. But in this slice of time, the borrower who we thought had a job, there was no job. And so we needed to add more income and we're gonna add Mom as the co-signer to get us in the end zone. That is the problem solving at your friend that you'll receive at Acuate Mortgage.
Speaker 1:Okay. So that , yeah . That , that's a first. I have never heard of somebody being the jobs not real identity thieve , uh, via a , a a job application That is, that is bad. So hopefully she's got her credit all locked up and all that kind of good stuff now, but Wow. Um, that's a new application by the way. So we can't close for eight days. I know you knew that, but that's , uh, how that works. Alright, you've been listening to the Acuate Problem Solving and Realty Show. Thanks for tuning in today. We'll see you back here next week. Have a great Sunday afternoon. The Anette Mortgage and Realty Show is paid for in full by ANETTE Mortgage, LLC and equal housing lender consumer access.org number 2 5 5 3 6 8 . The advice and opinions expressed during the Academic Mortgage and Realty Show are solely that at the hosts and guests of academic mortgage LLC and not WTMJ or Good Karma Brands.