Aaron Chapman joins us for a year-end review. We're going to take a look at 2018 as well as 2019 and see where we're going. Aaron is a 21-year veteran in the mortgage lending space. He lends his smarts, experience, and insights about the mortgage market and the way the industry is working from a lender’s perspective. Learn what’s going on in the mortgage lending industry, how that's going to affect us, and what we should be doing in terms of investing.

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2019 And Beyond - A Lender's Perspective
We want to look at 2019 and see where we're going. What we're going to do is take a look at 2018 and give it a recap, a year in review. In order to do that, I wanted to bring on someone who was on our show here and that's one of my favorite people, Aaron Chapman. He is a 21-year veteran in the mortgage lending space. He's a super sharp guy and smart. I rely on him almost like a mentor because he teaches me things about the mortgage market and the way the industry is working. How it's going to affect me as an investor and the people that we work with as our client’s investors. He's got a pretty big team of eleven people. He knows what he's doing and he's helpful. I wanted to bring him on to help us understand what has happened, what is going on in the mortgage lending industry, and how that's going to affect us? What we should be doing in terms of investing? Aaron, welcome to the show.

Thanks. It’s good to be on again.

It's great to have you back on. I’m reviewing my goals and I'm thinking, “What am I going to be looking at this year in terms of investments? Is it all going to be real estate? Where am I going to be investing? What are mortgage rates doing? Is it even going to impact me?” I know you have an answer to that question because we talked about that last time. Why don't we start by talking about 2018? If you were to recap what happened in 2018 at a macro level in terms of mortgage financing and how that applies to investing, how would you summarize 2018?

We got more settled into the financing real estate investor better than we had at any other time since the crash. As a matter of those people who want to invest, they want to get involved in it, they want to use the regular conforming financing, we were able to find those investors, banks and those other pools of funds that were more amiable to the real estate investment financing. It used to be they were fighting with us all the time. We have to prove that it wasn't as risky a deal. I can't say that they bought into it being lower risk than the owner-occupied. There's still a lot of that out there but it doesn't change the fact that we are able to do more. We're continuing to see high volume. What's interesting is the volume of transactions globally as far as real estate finance has dropped at 40% plus. We're seeing across the board big declines in applications taken, amount of loans that are closed, but real estate investment has continued to climb. We've seen a 116% gain. That’s what I've seen in my own personal business. That's inside a business that has shrunk nationally as far as lending in general.

The other thing that I’d like to summarize is we’ve seen rates take a direction that was completely opposite of what people have been used to for the last decade. They've been used to rates going down or rates stayin...