California Mortgage Survivors Have More to Endure

Like all mortgage broker industry meetings right now, the California Association of Mortgage Professionals' annual convention is a gathering of the industry’s survivors, but the message at the opening session was there are still forces out there that could further cut the numbers.
CAMP president Fred Kreger cited a quote from an unknown author which said that survivors are not necessarily the strongest or fittest, but those who are “smart, nimble, resourceful, and yes, lucky to avoid the pitfalls of uncertainty.”
He next brought up the term when it comes to a pair of wholesalers—Franklin American and SunTrust—which recently implemented flat fee payments to mortgage brokers for their services. These firms acted in the wake of Wells Fargo’s settlement with the Department of Justice.
Kreger said he did not blame those firms for acting as they did, because they themselves are trying to survive in the current regulatory environment.
The theory behind the flat fee is that it would combat the disparate impact of compensation practices on protected classes of consumers.
But if the flat fee becomes the standard, who will be around to serve those consumers, Kreger asked.
The best way for mortgage brokers to fight the flat fee battle with the Consumer Financial Protection Bureau is to get the Realtors and car dealers involved, he suggested.