NOV 30, 2012
What We're Hearing

Can President Obama Fix the Mortgage Industry? We May Soon Know

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As I’ve mentioned in the past, mortgage bankers (the ones that read National Mortgage News at least) tend to vote Republican though there are exceptions to the rule. I base that on both interviews I’ve conducted and email correspondence. But there is also a growing anger in certain sectors of the mortgage business – particularly among smaller nonbank players – toward all politicians. And yes, certain factions of the industry aren’t crazy about the GOP either because they seem to favor big banks and think consolidation is a good idea. Anyway, Obama won the election and that means a slew of new mortgage regulations – QM, QRM, LO compensation and servicing standards – will get finalized and hashed out in the months ahead. And as mortgage professionals see the new rules --  and digest them -- they will ask three basic questions (at least): how much is this going to cost me? Can I stay in business? And how can I compete against the guy across the street?

 

Comments (4)
Two Thumbs Up Catherine Coy!
Posted by Bill Borner | Friday, November 30 2012 at 1:44PM ET
There is a big difference in what would "fix" the mortgage business and what Washington thinks they need to do to "fix" the business. One thing for sure it seems there will be no end in sight to additional paperwork. I have files that over the last 2 yrs have grown to over a ream of paper because on top of Washington needs, lenders go overboard in collecting more and more data, and constantly updating credit lines. I am sure Washington thinks making it harder on the consumer is doing the right thing, with higher appraisal fees, more complex paperwork. In reality consumers would opt for less paper, like the one sheet GFE we used to have. Getting rid of the HVCC/AIR requirement would be a huge benefit to consumers = lower costs and better quality. Not something I see happening.
Posted by DA | Friday, November 30 2012 at 3:57PM ET
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