Regulatory uncertainty enters a new phase
In some ways, it has been a quiet year in terms of mortgage regulation and compliance. Most mortgage companies
and lenders have come to terms with the new rules and forms required by the TRID consumer-disclosure
regulations put in place in October 2015, and these same companies have had more than a year to gear up for
the increased data collection required to comply with new Home Mortgage Disclosure Act (HMDA) regulations.
Yet, this has been a year of immense legislative uncertainty in the industry. This past
January, the new presidential administration promised swift action to reduce the
regulatory burden on American companies, singling out the housing industry as one
main area where this deregulation was needed. Up for discussion was everything
from the leadership and governance structure of the Consumer Financial Protection
Bureau (CFPB) to reform of Fannie Mae and Freddie Mac, the government-sponsored
enterprises put into conservatorship after the housing crisis.
These discussions garnered a lot of ink in the press and from industry trade groups,
but as of the end of this past September no concrete changes had been made,
leaving the industry to continue to deal with — and gear up for — current regulations
while wondering what their processes will look like if and when deregulation does
come to pass. Our lead story this month, by Josh Friend of InSellerate, discusses how
automation can help you deal with some of the imperfections in the current TRID
regulations. Turn to Page 35 to read more. Then, for some insight into how regulations
are affecting the mortgage-servicing industry, turn to our Q&A with Edward Kirn,
president of USFN, on Page 22.
While waiting for deregulation to ease some of the financial burden of the mortgage
process, originators would do well to explore new markets that can increase their
bottom lines. Starting on Page 57, Tian Liu of Genworth Mortgage Insurance Corp.
discusses what originators should know about young borrowers as market dominance
swings back toward first-time homebuyers. Next, turn to Page 77 to read the article
by Jim Picciotto of TCB, which provides information on how to work with foreign-national borrowers. Then, take
a look at Page 116 to read what Wendy Peel of ReverseVision has to say about making reverse mortgages part of
a generational lending model.
Originators looking to explore new lending products outside of the Qualified Mortgage (QM) box should
turn to Page 86 to read the article by Denis G. Kelly of Sprout Mortgage, who details four such products. With
revised HMDA data collection looming, it also would be a good idea for originators and mortgage companies to
determine how best to collect and utilize all of that extra data. Turn to Page 62 to read what Jim Dunkerley of First
Funding has to say about managing your data. Then, if you’ve ever considered adding commercial mortgages —
which are far less regulated — to your repertoire, check out the nine-step plan for going commercial presented
by Tami Butler on Page 100.
All of these articles and more can be found in this month’s issue. Even though there may be a lot of uncertainty
surrounding the future of regulations in the mortgage industry, you can always count on Scotsman Guide,
for industry information, expert advice and tips for doing your job better.
From the Editor
By Will McDermott
Will McDermott is editor of Scotsman Guide Residential Edition.
Reach him at (800) 297-6061 or email@example.com.