One could argue that house flippers could make less if they buy the house for more than they expected, costs were more than anticipated, or the sales price was less than hoped for. It can be a lot of work, especially if individuals are competing with big-time flippers working with computer algorithms. ATTOM Data Solutions came out with its Q2 2019 U.S. Home Flipping Report shows that 59,876 U.S. single family homes and condos were flipped in the second quarter of 2019, up 12.4% from the 1stquarter of 2019 but down 5.2% from a year ago. Gross profits were up 2 percent from the previous quarter, but down 2 percent from a year ago.

Lender Products and Services

Part 2 of the new three-part series, “The 30-Year Fix,” was just released by Maxwell this morning. “The 30-Year Fix (Pt. 2): Mortgage Products Around the World” explores popular mortgage products across the globe (spoiler alert: very few 30-year fixed-rate mortgages) and considers why national mortgage markets tend to favor certain products over others to inform our discussion about what the future could look like with less reliance on the 30-year fixed-rate mortgage. No form or download required, and it’s 100% free and a must-read for all mortgage professionals. Read Part 2 here. (If you missed Part 1 yesterday, start from the beginning here!)

Consider this: Total mortgage application volume rose 2% during the first week of September as compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was up 69% as compared with the same week one year ago when interest rates were considerably higher. So, it’s no wonder lenders across the industry are feeling flooded. Record-breaking volume for lenders means record-breaking requests for vendors. Credit Plus has two tips to share that will help reduce the number of days it takes to close. First, when interacting with vendors, double check to ensure your requests are accurate and complete. And second, try to order the data and reports you need as early in the loan process as possible. By doing these two things, you can save yourself – and your vendors – time. And, as we all know, time is money.

Are you tired of searching for investor guidelines and overlays?  Do you need a plainspoken, clear approach before you reach out to your borrower? With TheRuleTool™, you can respond in seconds to a condition or borrower inquiry using clear, transparent language. It's as simple as picking your agency, navigating through the dropdowns to your keyword, or just entering your keyword into the search bar. Then from your desktop or mobile device, scroll through the results. If you are seeking more information, you can even quickly ask a guideline or scenario question of TheRuleTool™ Credit Policy Team. Email support@theruletool.com to start your free 30-day trial of TheRuleTool™, or visit www.theruletool.com for more information. Being amazing isn’t complicated – it just takes the right tool.

“PlainsCapital Bank National Warehouse Lending, a subsidiary of Hilltop Holdings (NYSE: HTH), understands the importance of efficiency when it comes to meeting our customers’ funding requests. That is why we make the funding process simple: “Express Funding” is how we help our customers reduce the time needed to get their loans funded. Express Funding allows our customers to submit multiple loans for funding in one simple data upload, whether it is one loan or 100 loans. Express Funding is an easy and efficient way to get the funds they need quickly. In addition, we offer a growing list of 2,000+ closing agents with No Doc funding requirements and funding turn times averaging under 30 minutes. We believe in consistently providing service to exceed our customers’ expectations. If you are interested in having a conversation about PlainsCapital Bank National Warehouse Lending, please contact Deric Barnett, EVP National Warehouse Lending.”

2019 is almost up, and it’s time to talk about achieving your year-end goals. VP of Client Success Kimberly Donovan would love to discuss how Informative Research can: 1) protect your leads from competitors, 2) grow your business, 3) reduce your credit and data costs, and 4) get the best service that works for you. If you’re heading to the MBA of the Carolinas’ conference next week, stop by the IR sponsored margarita bar on Monday night or reach out for a meeting today! Let Kimberly know your availability so you can start working on a more profitable strategy and process ASAP.

I love LOS downtime,” said no one, ever! Path is the cloud-based, data-driven, fully configurable LOS from Calyx that boasts 99.95% consistent uptime. In fact, we even offer an uptime guarantee. Designed to truly simplify the loan process, Path provides the flexibility and controls you need to monitor and run your business your way. In addition, Path’s professional services team is committed to delivering the fastest implementation timing in the industry and ensuring your long-term success. For more information, contact a Path Consultant today!

Do you covet the business intelligence platforms of your enterprise-lender competitors? Well want no more. Yesterday, LBA Ware unveiled LimeGear – the first turnkey, enterprise-grade BI platform for mortgage lenders – live from the Digital Mortgage stage. Met with overwhelming audience enthusiasm, LimeGear helps lenders leverage their data to improve visibility and collaboration between leadership, branch managers, LOs and operations teams. The online platform comes loaded with advanced dashboards and reports to improve the productivity and efficiency of your entire organization. No expensive per user license fees. No developer required. Just instant insights to inspire results. Sign up here to learn more.

Training and Events in Next Two Weeks

Do you want to improve on your ability to capture purchase business, and learn the 5 habits of highly successful loan officers? On 10/1 The Ohio Mortgage Bankers Association is holding its annual Loan Production Conference for loan officers and sales managers. Dr Bruce Lund, founder of 90-Day Sales Manager, and Jack “Bullseye” Kauffman, with Xinnix, will arm you with the knowledge you need to boost your loan production. Questions? OMBA: 614-682-6545.

There’s the MMBBA’s Crab Feast Social 2019 on Thursday, September 26th at Mike’s Crab House.

Register for the September 26th Mortgage Quality & Compliance Committee (MQAC) webinar on "Internal Audit Function and Your CMS".

Join the Hawai’i Association of Mortgage Brokers for a VA Loan Seminar tomorrow from 9-12 at Dave & Buster's. Jeff Wilson, Caliber Home Loans’ VP of Business and Development, will discuss VA loans. Jeff is a retired 20-year Army Officer who recently capped off 27 years with the Department of Veteran Affairs. HAMB is extending their member pricing to all MBAH members.

The annual NAHREP National Convention begins today through the 28th at the Grand Hyatt in San Diego. This year’s convention capitalizes on the surge of Hispanic homeownership, which has accounted for nearly 63 percent of new U.S. homeowner gains over the past decade. 

Find out about internal audits and your CMS with a webinar from California MBA MQAC on September 26th.

‎MBAC's 64th Annual Convention in Wilmington, NC begins on Sunday, September ‎29th. ‎ Register for “Leading the Way”. Discount codes are available for MEMBERS only, email robinw@mbac.org for codes.

Anow will hold its inaugural user conference on September 30, on Day One of Valuation Expo, the nation’s largest appraiser conference. Anow’s inaugural user conference will offer attendees three hours of programming, demonstrations of ground-breaking appraisal office management technology, expert thought leadership and peer networking opportunities.

Yes, the Valuation Expo is October 1-2 at the Flamingo in Las Vegas. Details can be found at www.valuationexpo.com. Fannie Mae and Freddie Mac will offer an inaugural peak at the new appraisal forms. For those in leadership at a lending institution or an AMC, consider attending the Collateral Risk Network (CRN) meeting pre-conference on September 30th. Some of the highlights are an introduction to a white paper on AVM standards and testing best practices presented by Lee Kennedy at AVM Metrics. Questions? Karen Connolly is available (513-490-0226).

Join PRMG University on September 30th to learn about an exciting option for borrowers that will protect their down payment on Conventional, FHA and VA products via the PRMG +PRMG Down Payment Protection.

Wells Fargo Funding, in cooperation with the GSEs, is hosting complimentary live sessions in three cities, focused on gaining market share with first-time homebuyers. Presenters will offer local market insights and cover strategies to connect with first-time homebuyers. Attendees will have the opportunity to participate in an interactive panel discussion with local housing agencies and real estate professionals. Additionally, Kristin Messerli, Managing Editor for Mortgage Women Magazine and founder of Cultural Outreach, will present on “The future of sales with young and diverse buyers”. Upcoming events will be held in Long Island, NY (Oct. 3) and Chicago, IL (Oct. 8) with Freddie Mac, and Minneapolis, MN (Oct. 9) with Fannie Mae. GSE representatives will share insights on their affordable programs. Each session runs from 11:00-3:30 and includes lunch. Approved and prospective Wells Fargo Funding clients are welcome. If interested, contact a member of your regional sales team or send an email to CorrespondentDiverseSegments@wellsfargo.com.

MPA and MySmartBlog are offering a Free Webinar on October 2nd, “Don't let corporate monsters like Zillow and Amazon steal your mortgage business”. Register and learn essential insights on creating scalable solutions to focus on the right strategies proven to compete with big businesses.

Join Carrington Wholesale on Wednesday, October 2nd @ 10am (PST) for a free live webinar to explore credit fundamentals for successfully closing more loans with Carrington’s FHA Manual Underwrite program.

As margins begin to shrink, settlement service providers like homebuilders, lenders and real estate brokers are all looking for supplemental revenue income. Mayer Brown partners Phillip Schulman and Holly Spencer Bunting will educate you on how to take advantage of these opportunities in the upcoming 2-part webinar series, October 2nd and November 20th: Strategic Alliances for Today’s Title Industry: Affiliated Agencies and Strategic Alliances for Today’s Title Industry: Marketing Activities.

OMBA’s Second Annual Loan Production Conference will take place on October 1st. This years’ schedule includes “5 Habits of Highly Successful Lenders” taught by Dr. Bruce Lund and The Proven Formula for Purchase Business presented by Xinnix. Complete the registration form or log-in online and register there.

Capital Markets

U.S. Treasuries rallied for the seventh consecutive day of gains yesterday, including the 10-year note closing -7 bps to 1.64 percent, pressured amid tough China talk from President Trump at the United Nations while the afternoon announcement regarding an impeachment inquiry of the President from House Speaker Pelosi also rattled investors’ nerves. Further weighing on lower coupons was the flattening of the 2s/10s curve which got within about 1bp of inverting ahead of an afternoon’s 2-year auction before steepening back out.

The Conference Board's Consumer Confidence Index for September dropped to its lowest level since last December, weighing on equities as it reflected a growing anxiety among consumers about the impact of tariffs and trade tension. While consumer spending remains strong, confidence continues to wane, meaning the market will start to assume it is going to show up in weaker levels of discretionary spending activity, in turn hurting growth prospects.

The New York Fed conducted two more repurchase operations, and both were oversubscribed. The day started with a 14-day term repurchase operation, which saw total bids of $62 billion, well above the accepted amount of $30 billion. Later on, the NY Fed conducted a one-day repurchase operation, accepting total bids of $75 billion, which was $5.2 billion below the total submitted amount. MBS /treasury repo spreads were wider at yesterday’s repo operation than on Monday, while MBS collateral also continued to be oversubscribed compared with treasuries.

Markets this morning have already seen weekly mortgage applications decreased over 10% from one week earlier, per the MBA Weekly Mortgage Applications Survey. New home sales for August are next up later this morning and will be followed by both a $41 billion 5-year Treasury notes auction and the Fed conducting a Class A FedTrade operation when they purchase up to $906 million UMBS 3 percent ($668 million) and 3.5 percent ($238 million). There are also several Fed speakers throughout the day, including Chicago’s Evans, Governor Brainard, Kansas City’s George, and Dallas’ Kaplan. We begin the day with Agency MBS prices roughly unchanged from Tuesday’s close and the 10-year yielding 1.66%.

Jobs and Promotions

My apologies yesterday for having the incorrect email address for Andy Looker, non-QM lender Angel Oak Mortgage Solutions’ new National Business Development Manager. AO is continuing to add Account Executives across the country and Inside AEs in Miami. To learn about joining the AO team, start the conversation with Andy (704-607-1516). AO has added to its impressive roster of Account Executives in August/September. Looker has over 30 years in the financial services industry while building multi-million-dollar mortgage lending operations in a multi-state region and his deep understanding of the mortgage business will allow him to be responsible for the growth and development of Angel Oak’s wholesale non-QM presence across the nation.

“Are you a highly motivated sales professional with a strong competitive, and confident edge about yourself? Do you have a proven track record of success in Non-Delegated Correspondent sales? Do you feel like you could do so much more with the right company, with the right Non-QM products and in the right situation? If so, you just might be the National Sales Manager we are looking for. Highly competitive compensation package, there is no limit to what the right person can earn and accomplish in this very unique opportunity.” Please submit confidential inquiries/resumes to Chrisman LLC’s Anjelica Nixt for forwarding. 

PrimeLending announced the promotion of Tim Elkins to Chief Production Officer (from CIO) where he will oversee the company’s Retail Production (which includes more than 1,300 loan originators), Marketing, and Multicultural Lending teams, along with retaining his existing Technology-related responsibilities. Good to mix things up once in a while!