Los Angeles Fires Archives - Insignia Mortgage

At Insignia Mortgage, our hearts go out to those affected by the recent Los Angeles and Altadena fires. We understand this is a deeply challenging time and are here to guide you. Below are several key considerations and best practices based on our experience assisting homeowners during post-catastrophe recovery.

Best Practices for Homeowners:

Property Taxes
If your property has been significantly damaged or destroyed, you may qualify for a reduction in property taxes to reflect the assessed land value. Contact your county tax assessor’s office for details or visit https://ttc.lacounty.gov/ for more information.

Mortgage Payments
While the loss of your home is devastating, it’s important to remain current on your mortgage payments. Please note that the obligation to pay your mortgage remains in effect even if your home has been damaged or destroyed.

Insurance Claims
If you plan to file an insurance claim for property damage, notify your lender immediately to understand their requirements for processing insurance claim funds. Clear communication is essential to avoid delays.

Forbearance Requests
If you are considering requesting a forbearance on your mortgage payments, ensure that you obtain written confirmation from your lender. This confirmation should specify that the forbearance will not negatively affect your credit report.

Property Vesting
Avoid changing the vesting (ownership structure) of your property without prior approval from your insurance company. Doing so could affect your ability to file or process an insurance claim.

Property Tax Relief
Per Executive Order N-10-25, property owners in affected ZIP codes (90019, 90041, 90049, 90066, 90265, 90272, 90290, 90402, 91001, 91040, 91104, 91106, 91107, 93535, or 93536) may delay their property tax payments until April 10, 2026, without penalty. Please note that while payment is delayed, taxes will still need to be paid. For the full executive order and details, visit https://www.gov.ca.gov/wp-content/uploads/2025/01/2025.01.16.-EO-Property-Tax-Penalties-Relief-_bl-11.51am_-GGN-Signed_.pdf.

Temporary Housing Assistance
If your home is uninhabitable, you may qualify for temporary housing assistance through your insurance policy. Contact your insurance provider to confirm coverage for Additional Living Expenses (ALE), which may include hotel stays, rental costs, and other expenses.

FEMA and Disaster Assistance
If the fire has been declared a federal disaster, you may be eligible for financial or housing assistance from FEMA. Visit https://www.fema.gov/disaster-assistance or call 1-800-621-3362 to learn more about available resources.

Document Recovery
If you’ve lost important documents like property deeds, insurance policies, or identification, begin the recovery process as soon as possible. Contact your local recorder’s office for property records or visit https://www.usa.gov/replace-vital-documents for tips on replacing lost identification or documents.

Utility Notifications
Contact your utility providers (electricity, gas, water) to inform them of any damage to your property. Request temporary disconnection if necessary and inquire about disaster relief programs they may offer, such as waived fees or payment assistance.

Important Disclaimer:

The above information is provided by Insignia Mortgage for informational purposes only and does not constitute legal, tax, or financial advice. We recommend consulting with qualified professionals for advice tailored to your unique circumstances.

If you have additional questions or need further assistance, please don’t hesitate to contact us.

Warm regards,
The Insignia Mortgage Team

Stock Market and Bond Yields Rally With Softer Than Expected Inflation Data

The stock market rose while bond yields retreated, as both the Producer Price Index (PPI) and Consumer Price Index (CPI) came in better than expected. After months of high financing costs, these favorable inflation reports provided some relief. However, it’s important to remain realistic about how low interest rates can drop, with the economy growing at 3% and inflation trending at 3%. Oil prices have climbed to nearly $80 per barrel, exacerbating inflationary pressures. On top of everything, the recent LA fires are projected to become the largest natural disaster in U.S. history. The event is expected to drive up insurance premiums nationwide, increasing financial pressure on many Americans who endured a 23% rise in inflation since January 2020.

We anticipate the 10-year Treasury yield to normalize between 4% and 5%. Hopes for significantly lower rates hinge on addressing the U.S. government’s mounting debt and deficit spending. Incoming Treasury Secretary Scott Bessent has voiced concerns about excessive government expenditures. If the government takes steps to streamline spending and improve operational efficiency, it could send a positive signal to bond markets. While significant cuts to federal spending seem unlikely, even modest reforms could help stabilize the bond market. There’s also potential for mortgage credit spreads to tighten, which could provide some relief for borrowers if Treasury yields remain elevated. Notably, the Fed’s recent 100 basis-point rate cuts have been offset by a corresponding increase in the 10-year Treasury yield, negating the intended benefits for borrowers.

Single Family Mortgage Rates

Despite elevated interest rates, several banks are keeping mortgage spreads over Treasuries tight. High-net-worth borrowers willing to establish banking relationships can still secure mortgage rates in the mid-5% range. For buyers in middle-income areas, some community banks are offering high-leverage loans near 6%. Additionally, niche products for self-employed professionals, including doctors and lawyers, provide financing up to 90%-100% with no mortgage insurance and flexible qualification criteria based on newer income.

Commercial and Business Loans

Entrepreneurs seeking financing for commercial real estate or business needs can expect rates starting at SOFR + 2.50%, with options for tailored structures such as limited prepayment penalties, cross-collateralization, and interest-only terms. Business loans are also available at Prime for borrowers seeking under $15 million.

Construction Loans

Construction financing remains available but challenging to secure. Rates for high-net-worth borrowers start at 6%, while multi-family construction loans begin at 6.5%. Private credit options offering higher leverage are available but come with rates starting at 9.25%.

This environment offers opportunities for savvy borrowers, but navigating the current market requires a strategic approach and careful lender selection. Insignia Mortgage is here to help with lending solutions.