10 Things That Will Keep Originators on Their Toes in 2016
December 31, 2015 10:30 AM
Mortgage lenders on both the residential and commercial sides of the business will have to deal with a different lending environment in 2016. These include enforcement of TILA-RESPA Integrated Disclosure violations plus rising interest rates and the impact on origination volumes. Here are 10 observations that originators need to mull over while crafting their business plans for the coming year.
Disclosure Process Continues to Evolve
"Putting the required content into a disclosure form and getting it done in time to meet the time turnaround is something the industry is still very much adapting to right now and we think that's going to continue all the way through 2016." – Brian Benson, CEO, ClosingCorp
A Change in Direction ...
"Regulators are shifting from implementing new regulation to enforcing it. So, lenders should prepare themselves to be able to demonstrate that they've got a solid and complete and accurate compliance management system in place." – Rick Seehausen, CEO, LenderLive Solutions
... To Enforcement by Example
"CFPB will come out and they will do some enforcement actions to make a point." – Brian Benson
Transforming the Closing
"'Next year' has always been the year of the electronic close. That is because we can all see the great value that is coming when we do it. There will be cheaper, more secure, more data reliable loans when we can do it. [But] it's not quite there yet." – Sharon Matthews, CEO, eLynx
Efficiency Rules
"We're entering a world where service providers that have invested in technology and innovation will be utilized to a greater extent to help lenders achieve efficiencies. We see it in a number of different areas." – Rick Seehausen
Fed on Right Track
"Janet Yellen is looking to get ahead of the upswing in the economy so that she doesn't overshoot, and that's good economic policy for the country." – Sharon Matthews
Rate Hike Opens Door for CRE Lending
"The good news is that [the Federal Reserve Board is] seeing economic growth, which I think will continue to keep the banks happy in terms of the fundamental economic conditions they're lending to, as well as the equity investors that are looking for continued growth and strength in the economy to support the projects that they're investing in." – Shlomi Ronen, managing principal, Dekel Capital
Money for Commercial Property Purchases
"Liquidity looks and feels like it's going to be there [to finance commercial properties]. If you have the combination of a liquid debt market and a liquid equity market, then I think you're in a pretty good spot." – Ernie Katai, executive vice president, Berkadia
Millennials Out on Their Own
"Once they get that financial independence, I think they are probably sick and tired of living at home and ready to move out." – Frank Nothaft, chief economist, CoreLogic
Closing the Gap
"The difference in the gap between a bank and a nonbank is a nonbank's lack of regulation. But people keep talk about regulating nonbanks. So maybe at some point, they'll end up being regulated and everybody will be in the same boat." – Rich Walter, senior managing director, Promontory Interfinancial Network
