Our Elected Officials, Mortgage Geniuses One and All

What's the most common complaint I hear these days from mortgage executives? Answer: too much regulation. I'm not going to sit here and tell you to “get used to it” but we all know that given the continued housing recession/depression that there will be no easing up on the regulatory climate any time soon. Only if the White House changes over to a Republican might the industry see some relief and even that is not a sure bet. One lender – who didn't want his name or company published – confided in me that he has 20 employees who work on compliance issues alone. He lamented the cost to his shop, $4 billion - $5 billion a year originator. I have no idea if 20 is too many or too little, but I know this about his company: it has survived the housing tumult nicely, has a strong capital position, and warehouse lenders are eager to do business with it. It plans to be a player in this industry in the years ahead and is even toying with the idea of entering the servicing market because he's sick and tired of the lousy 'SRPs' being paid by the consolidators. As for compliance costs, we all know how mortgage lenders and servicers will deal with it: finance the additional overhead by making consumers pay more in fees. As Ross Perot once said, “Problem solved.”