Case Study

Trump-Bump Doesn’t Phase Lewiston Orthopaedic Associates

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Trump-Bump Doesn’t Phase Lewiston Orthopaedic Associates

It’s early November 2016 and we are heading into Election Day. The two leading candidates are Hilary Clinton and Donald Trump. Polls are predicting Hilary wins but what happens next no one could have predicted.  Donald Trump, the real estate tycoon who was on TV firing people less than 10 years ago is now the President of the United States.  Markets almost immediately spiral downward but then recover by the next morning.  Wall Street begins to realize that Trump’s politics leading into the election were for deregulation within the financial sector.  American stocks begin an extraordinary bull run that continues into 2018.

Accompanying the wild ride in the stock market was a dramatic increase in interest rates over a short period of time. During the three-months after the election interest rates increase over 40%. Putting the Trump-Bump in perspective, interest rates are still at historic lows. But in some cases, our clients were seeing as much as an 80-basis point increase on indicative rates from loan proposals in hand.

Scenarios like this left one of our clients, Lewiston Orthopaedic Associates (LOA) in Idaho feeling some sticker shock. Fortunately for this deal, LOA and CMAC had cast a wide net for loan proposals and the group was able to pivot to another lender like Lebron James hitting a game winning turn around fade-away in the paint, SWISH! Rather than accept the higher rate as provided, LOA refused to lose and was able to walk off the court a winner with a low interest rate (which represented only a 25-basis point increase) on a 10-year loan with a 25-year amortization. The strength of the group’s practice was a primary driver for success, but it was their tenacity to never give up and make a quick adjustment that led them to victory.

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