The Return of the Professional Risk Managers?

Not so long ago, I mused in a column for this publication about the dearth of qualified underwriters available at a time when the industry is in desperate need of them (http://www.mortgageservicingnews.com/nmn_features/the-lost-generation-1026918-1.html). It was Hemingway who first introduced me to the concept of the Lost Generation, a situation that seems to have entered our reality today. 

This past year, we watched as legislation brought back the fully documented loan. Unfortunately, the law couldn’t bring back the hundreds of professional underwriters who have left the business over the past few years. It left me wondering if anyone remembers how to actually underwrite and decision a fully documented loan?

I suspect the industry will attract them back and companies like ours will work to keep them up to date on the latest fraudulent schemes in use around our industry. The consequences of funding a bad loan are just too high in this environment to risk not having the best underwriters you can get. And today, lenders are more careful than ever to avoid regulatory risk.

That’s why I think 2012 is going to be the Year of the Professional Risk Manager. In the past, we saw the front line originator have his day in the sun, followed by the secondary marketing executive and most recently the default services professional. But in 2012, it’s going to be the risk managers who keep the industry working.

Who do you think will be in the spotlight this year?