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• OCTOBER 2, 2020 • Midlands Business Journal
Mortgages A section prepared by the staff of the Midlands Business Journal
October 2, 2020
Local mortgage industry experiences market at full capacity by Gabby Christensen
According to area experts, the current mortgage market is extremely active right now with no signs of changing anytime soon. Jeff Shapiro, executive vice president at Centris Federal Credit Union, said there has been a steady flow of mortgage applications for the past six months for both first and second mortgages. “Existing home sales continue to be brisk, especially Shapiro under the $250,000 price range,” he said. “With COVID-19, people have had more opportunity to stay at home and realize they want to make improvements. They are tapping into their home equity and using it to improve or remodel, potentially increasing the value of their home. With the low rates, we are seeing people move their second mortgages into first mortgages, which can save the homeowner money.” Shapiro said if homeowners have been in their current mortgage for the last threeto-five years and plan to stay in their home
for a few more years, it makes sense to review their loan and talk to a mortgage expert who may be able to guide them to deeper savings through a refinanced loan and a better interest rate. Brad Flanagan, branch manager/ home loan advisor at Fairway Independent Mortgage Co., said it’s extremely important that consumers keep the future in mind when making decisions for the here and now. “The Fed stated that rates are going to remain low Flanagan through 2023 and after, but unfortunately they are talking about the rate in which banks borrow money from each other,” he said. “It doesn’t have a direct correlation to mortgage rates.” There are some impacts from the Coronavirus Aid, Relief, and Economic Security (CARES) Act that consumers might not be aware of, so it’s critical to only take advantage of forbearance if needed. “Some people who are buying new homes right now might have refinanced a couple of months ago or two years ago, and they didn’t take into consideration that it
Brent Rasmussen, president/owner at Mortgage Specialists. costs to redo a loan,” Flanagan said. “It’s Mortgage Specialists, said there’s never important to keep these thoughts in mind been a busier time for the local and nawhen making any choices. Take your time, tional mortgage market. work with someone you trust and don’t “Due to [an] all-time low inventory, rush through the process.” home prices continuing to rise, [and] so do Brent Rasmussen, president/owner of appraised values,” he said. “This at times can lead to appraised values being an issue for mortgage loans. But due to the all-time low interest rates, it allows borrowers to afford more of a house and to lock in low interest rates for possibly a lifetime. With rates being as low as they are, money is nearly free.” Rasmussen expects interest to stay low for a long time and mortgage interest rates to stay below 4% for a couple years or more. “So while the markets stay hot, we will see mortgage rates continue to drive the market,” he said. Mortgages for lower credit individuals and jumbo loans are harder to come by due to the risk of borrowers missing future payments. “We are also seeing home values at all-time highs, so we don’t anticipate the issues we saw in 2008 because borrowers will not be upside down in their home,” Rasmussen said. “If they get behind on their payments and possibly have an issue with being foreclosed, they can sell their house, breakeven and we will not see the massive foreclosures in Omaha.”
Mortgages — inside OCTOBER 2, 2020
THE BUSINESS NEWSPAPER OF GREATER OMAHA, LINCOLN AND COUNCIL BLUFFS
THIS WEEK 'S ISSUE:
$2.00
VOL. 46 NO. 40
Object Partners on track for boost by joining forces with Improving by Michelle Leach
Safety Reports launches virtual inspection app amid pandemic. – Page 2
al nti te e sid sta Re al E Re
Various corners of the real estate industry reflect on how to address major challenges. – Page 3
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How to create content that focuses on your customers’ needs. – Page 23
Sixteen years ago, Object Partners, Inc. (OPI) had one employee in Omaha to support a local client. Today, there are 69 employees based out of its Aksarben Village office. And the Minneapolis-headquartered custom software solutions firm is poised to introduce its capabilities to a larger audience and to add service offerings, courtesy of joining forces with Dallas-based technology consulting company, Improving. “There are mixed emotions of anxiety and excitement,” said General Manager-Omaha Mark Ruch. “There have been zero changes. [Improving] is not in the business of acquiring companies and going in and ripping out leadership. They really try to acquire companies that make sense, and they allow them to continue operating.” In fact, with Object Partners, an Improving company, operating so efficiently, Ruch indicated Continued on page 22.
General Manager-Omaha Mark Ruch … Acquisition provides more tools for custom software developer to present to clients, cross-pollination among acquiring firm’s companies. (Photo by MBJ / Becky McCarville)
Environmental stewardship program among services cultivated by Barcel Enterprises by Michelle Leach
From its corporate headquarters in Bellwood, Nebraska (population: 420), Barton “B.J.” Barcel has cultivated 13 companies. The Barcels’ entrepreneurial roots run deep; the family’s presence in logging goes back 100-plus years. Over Barcel Mill and Lumber Co.’s 71 years, it’s branched into new products and
services — notably, its Certified Recycling Accountability Program (CRAP) launched last year. “We partner with companies, municipalities and colleges,” Barcel said. “We bring into our facility their recyclable materials … we then recycle them into different products, and issue to the different entities a certificate of Continued on page 22. From left, owners John Rhodes, founder Phil Rhodes Sr. and Phil Rhodes Jr. … The family-owned business has adjusted to both trends and precautions during the pandemic.
After 50 years, Futuramic’s Clean Water Center holds onto history, focuses on steady growth by Gabby Christensen
Barton “B.J.” Barcel … Helping companies lessen their carbon footprint. Pictured here with a machine that makes biochar and a pot made of sterilized cow manure; the packaging will also be plantable. (photo courtesy of Barcel Enterprises)
Not all businesses make it to a 50-year anniversary and even fewer remain family-owned and -operated after five decades, but Futuramic’s Clean Water Center in Omaha has reached this milestone, largely due to an emphasis on family and customer service, according to Phil Rhodes Jr., owner. Founded in 1969 by Phil Rhodes Sr., the business has al-
ways held onto one clear mission — provide good and clean water. Over the years, the business has acquired other local water treatment companies and grown its team to 16 employees. Still, nearly half of the staff is related by blood, and the others are family in their own respect, Rhodes said. Today, the company provides sales, service and rental of custom-built water treatment sysContinued on page 6.