Mortgage Industry Trends

ICYMI: A Recap of What’s Going On in Denver

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MBA-annual-conference-2017-recapIn case you didn’t attend the National MBA Conference in Denver, here are some snippets on what’s going on.

Fannie Mae

Fannie Mae made some new announcements about more D1C authorized vendors and on expanding pilots to test out the use of single vendors for all required validations.

They also announced their new Application Interfaces providing lenders with everything needed from Desktop Underwriter to originate loans.

They will also be offering a marketplace of potential loan servicers to create more efficiencies for managing co-issue deals.

Sounds to me like Fannie is getting much deeper into the loan origination business and in determining who should service their loans. Is that really so good for lenders?

Federal Housing Finance Agency

Director Watt defended FHFA’s decision to add a Preferred Language Question to the new URLA saying that it’s the right thing to do. Not all lenders agree.

More challenges, more programming, and more information for use by Fannie, Freddie, and the CFPB. Maybe, lenders will soon only be needed to collect data. Fannie and Freddie will determine the loan approval and pricing, along with the property value and digitally close the loan.

 

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Housing and Urban Development

HUD Secretary Carson announced that FHA will work with banks and lenders to reduce the threat of False Claims Act actions when only minor errors are detected.

FHA is seeking to reduce regulatory burdens and actions in hopes of bringing more banks and other lenders back to doing FHA loans. This, he says, will benefit the lenders and the low to moderate income borrowers needing the FHA programs. That sounds like a good plan.

Mortgage Bankers Association

MBA President and CEO, David Stevens, touted the accomplishments of the MBA in working for its members saying that MBA now has a good working relationship with the current Administration.

According to Stevens, “When it comes to policy, the policymakers in Washington come to us. They rely on our data, our research, our thoughtfulness, and our perspective.” This is good news for all MBA members and the industry.

Mr. Stevens also went on to say that he believes the lasting change that the industry needs can only come through legislation. A little shocking since most in the industry believe we already have too much mortgage lending legislation and regulations.

According to Stevens, “What happens if the president nominates a new director who thinks the government role in mortgage finance is too large and wants to scale it back? The answer is that it could affect everything from g-fees to loan limits.

Credit policy could change which would impact the QM patch and confidence in the rule as it works today. Even the level playing field in pricing and credit terms could change as there is nothing locked in.

Maybe. But, do we want the Congress determining how we should run our business and price loans? Do we want the lending process codified into laws? Be very careful what you wish for…

Legalization of Marijuana

And last but surely not least, it’s being reported that the legalization of marijuana in Colorado has been a boon to both the commercial and residential real estate markets. It’s a smoking market (pun intended).

These are just a few highlights of what’s happening at the mortgage industry’s biggest and best conference. I wonder what else might be going on in Colorado…

Michael Vitali

About the Author

Michael Vitali

Michael L. Vitali – Independent Consultant to the Mortgage Industry Mike Vitali is an independent consultant to the mortgage industry on matters concerning compliance and mortgage lending. He most recently served as the Senior Vice President and Chief Compliance Officer for LoanLogics, monitoring regulatory developments and their practical implications for the mortgage lending industry. His duties included research, interpretation, and analysis of existing and proposed legislation related to the industry in support of recommendations for policy and/or procedure changes to maintain continued quality and compliance with all applicable laws, rules and regulations, investor requirements, and standard mortgage practices. In his more than 40 years in the mortgage industry, in senior level management, he has gained experience in all areas of mortgage lending, risk management, and compliance. Mike is a past President of the MBA of Greater Philadelphia, is a charter member and was the second Chairman of the MBA of Pennsylvania, and a past board member and Legislative Chair of both associations. He is a recipient of the 1998 Mortgage Banker of the Year Award from the MBA of Greater Philadelphia, and the 2003 Chairman's Award from the MBA of PA, and currently serves on several compliance related task forces for MBA.
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Michael Vitali

About Michael Vitali

Michael L. Vitali – Independent Consultant to the Mortgage Industry Mike Vitali is an independent consultant to the mortgage industry on matters concerning compliance and mortgage lending. He most recently served as the Senior Vice President and Chief Compliance Officer for LoanLogics, monitoring regulatory developments and their practical implications for the mortgage lending industry. His duties included research, interpretation, and analysis of existing and proposed legislation related to the industry in support of recommendations for policy and/or procedure changes to maintain continued quality and compliance with all applicable laws, rules and regulations, investor requirements, and standard mortgage practices. In his more than 40 years in the mortgage industry, in senior level management, he has gained experience in all areas of mortgage lending, risk management, and compliance. Mike is a past President of the MBA of Greater Philadelphia, is a charter member and was the second Chairman of the MBA of Pennsylvania, and a past board member and Legislative Chair of both associations. He is a recipient of the 1998 Mortgage Banker of the Year Award from the MBA of Greater Philadelphia, and the 2003 Chairman's Award from the MBA of PA, and currently serves on several compliance related task forces for MBA.
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