Weighing The 100% Commission Split

By ERIN FLYNN JAY Mortgage companies are fighting to recruit and retain top performers, even offering 100% commission splits. Could these programs gain traction as the industry continues to change? NEXA Mortgage, one of United Wholesale Mortgage’s top partners, made headlines when they announced in May that they are creating partnerships with loan officers where the LOs keep up to 100% of commission splits. The program is titled NEXA100. Michael Neill, director of correspondent lending at NEXA, said: “This is probably the boldest program we’ve launched because it goes against the fear that, if you give too much of the split to loan officers, you do not have anything left to run the company. We don’t believe that.” Founder and…

Home Flippers Hit Hard By Interest Rates, Inflation

By ERIN FLYNN JAY Home flipping activity is down across the nation as people who work in the industry see reduced returns on investments due to high interest rates and inflation. Last month, ATTOM released its 2023 U.S. Home Flipping Report, which showed that 308,922 single-family homes and condos in the United States were flipped last year. That was down 29.3% from 436,807 in 2022 and is the largest annual drop since 2008. The report further revealed that as the number of homes flipped by investors declined, so did flips as a portion of all home sales, from 8.6% in 2022 to 8.1% percent last year. Rob Barber, ATTOM’s CEO, said high interest rates and inflation have elevated costs for…

Flippers And Rental Owners Have Different Attitudes About Investment Potential

By ERIN FLYNN JAY When it comes to investment properties, both fix-and-flip investors and rental property owners stand to make money this year, but their outlooks are vastly different. According to the Winter 2023 Investor Sentiment Survey from RCN Capital, conducted by market intelligence firm CJ Patrick Company, 50% of flippers felt things were better today than last year, and 51% expected things to improve over the next six months. In comparison, only 20% of rental property owners felt conditions were better today, and 22% expected things to improve over the next six months. Overall, after jumping from 30% to 39% in the Fall Survey, investor optimism was basically flat with 40% of the respondents saying the environment for investing…