What We're Hearing

It’s unlikely that legislation to create the proposed Consumer Financial Protection Agency will pass this year but that hasn’t stopped the industry from talking about it. (At press time a Congressional hearing was underway on the CFPA.) It’s a foregone conclusion that some type of CFPA will be birthed next year but what will it lead to? Some industry veterans believe the mortgage industry will be commoditized around the 30-year fixed rate loan but a whole new lending segment will be born anew. These lenders will be depositories that keep on their balance sheets non-conforming loans – sort of like the old consumer finance companies used to do -- except instead of borrowing money from Wall Street, these ‘consumer finance’ thrifts will use depositors’ money to fund originations and may even employ nationally certified loan brokers. Wishful thinking or not? Drop me a line...