Topic ‘A’ at the MBA Annual Convention: Higher Net Worth Requirements

In a few days mortgage professionals from across the nation will meet in Chicago for the annual meeting of the Mortgage Bankers Association. Given the fantastic profit margins many lenders are enjoying right now, the mood should be good. However, there are many unsettled regulatory issues – such as loan officer compensation, the QM and QRM rules -- casting a dark shadow on the industry. And then there’s the issue of higher net worth requirements for Fannie Mae and Freddie Mac seller/servicers. Presently, the minimum is $2.5 million but we keep hearing stories about a $5 million minimum phased in over multiple years. Keep your ears open.