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Risk Management

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Whether it's a formal merger/acquisition deal or a loan production office changing affiliations, successfully bringing together the cultures of two organizations is crucial to creating a harmonious union.
In the coming months, banks, mortgage lenders, consumer advocates and policy wonks will be slicing and dicing the latest Home Mortgage Disclosure Act data, as they do every year. Rarely, if ever, have the stakes been higher.

There are certain parts of the market where you that can't get a conforming mortgage because we know what happens" when loans go into default, said John Stumpf, the CEO of Wells Fargo.
During a wide-ranging discussion of the economy and regulation, Wells Fargo CEO John Stumpf cited several factors that were harming the housing market. His comments came the same day the White House hosted a meeting on the topic.

"One bad loan can eat up an entire month's profit," said Kevin Marconi, the chief investment officer at United Fidelity Funding.
The Consumer Financial Protection Bureau and Fannie Mae may actually be helping banks and mortgage lenders boost their bottom lines through better oversight of their third-party vendors.

"Compliance applies to everything," said Tom Wind, Everbank's executive vice president of home lending. "There's a whole different mindset you need to manage the business."
New regulatory and investor compliance requirements have put a renewed emphasis on quality control measures. But lenders are discovering the additional costs of these efforts are outweighed by the savings from originating fewer defective loans.

HEARING THEIR PAIN? By switching charters and escaping the QTL test, Berkshire Hills Bancorp will have "greater flexibility with respect to the future of commercial lending," CEO Mike Daly (left) said. Comptroller Thomas Curry said the test should be eliminated so federal thrifts can "adapt … to changing economic and business environments."
One reason so many federal thrifts have switched to other charters is that the Qualified Thrift Lender test impedes their commercial lending. However, a top regulator says he wants it eliminated.
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