National Mortgage Professional Magazine Presents
Roundtable Discussion The discussion Furthermore, today’s strict QM lending guidelines play right into our business model, which focuses solely on non-prime mortgage products. We’re targeting borrowers that have been locked out of getting a mortgage because of those regulations. Tom Salomone: The National Association of Realtors® enjoys a strong working relationship with the federal agencies that oversee our industry. We recently hosted senior leadership from the Consumer Financial Protection Bureau, the Small Business Administration, and the Federal Housing Administration on a range of issues important to Realtors®, and we’re pleased with the working relationship we share with our partners. Of course, that doesn’t mean there isn’t work ahead. For example, we believe that FHA should consider additional measures to ease burdensome condo rules; that the CFPB should remain mindful of its commitment to show “sensitivity” towards good faith actors adapting to Know Before You Owe disclosures; and that it’s important to protect rules and provisions that help make real estate such an attractive investment, including the mortgage interest deduction. In the year ahead, we’ll be looking towards these and other major policies to advance the business of Realtors®, support consumers, and make homeownership a more attainable dream for creditworthy borrowers.
Any closing comments?
Terry W. Clemans: I have two. First, I encourage everyone to take notice of the information that will be coming out in the near future about Fannie Mae’s movement to trended data as discussed earlier. This will change the reports more than any development since the use of credit scores. Second, become more aware of and familiar with rules about the proper use, storage and disposal of credit information. Too often, business people who are very busy can get complacent with the credit data of which they are entrusted allowing for the unintended, but improper use of the credit data that can be devastating to both the consumer and the mortgage originators company. Data breaches are very costly and can be done in both digital and paper forms. These can lead to identity theft, which everyone knows is a major problem today. We all need to be better stewards of this consumer data that drives our businesses. Please take extra steps in 2016 to make sure your systems and paper waste are not used to fuel the identity theft problem. A way to be a better steward of the data is through NCRA’s Fair Credit
Rey Maninang: We expect that 2016 is going to be a positive year for the mortgage industry. Although refinances are likely to slow down some, the corresponding uptick in purchase business will bring new homebuyers to the market. We anticipate continued interest in purchase opportunities from consumers with lower credit scores, as well as expanded competition from lenders to serve those borrowers who have credit scores below 620. Alexandra Rodriguez: Angel Oak is excited and ready for 2016 to take off. We expect the industry to thrive and to become more open to the possibilities of alternative lending.
Tom Salomone: I’d simply add that although there are challenges ahead, I believe the future is bright for real estate, both for those of us in the industry and for consumers. A lot of good work has been done to move forward on some important issues, and I believe consumers and those of us in the industry will see continued opportunities for success in the year ahead. Theodore W. Tozer: For Ginnie Mae, we are trying to keep up with business growth and the transformation within our Issuer base. For example, in fiscal year 2015, Ginnie Mae surpassed Freddie Mac in total MBS issuances, and we even outpaced Fannie Mae during certain months. Why? The constituencies we serve—middle-class families, military veterans, underserved communities—have increasingly turned to the FHA, VA and other government mortgage programs, and we need to support all of them. So we expect our business volumes to remain high. With MBS investors, there is incredible demand for our securities, so we need to protect the integrity of the government guaranty. Lastly, we are working to implement a risk-management approach that can better support independent mortgage banks, enable a robust market for mortgage servicing rights, and otherwise ensure the safety and liquidity of the government mortgage market.
n National Mortgage Professional Magazine n JANUARY 2016
Rocke Andrews: The economy and the housing market is recovering and will hopefully return to once robust levels. The year 2016, in my opinion, will be a good year to be a mortgage loan originator.
Donald J. Frommeyer: I really feel that 2016 is going to be a great year. The economy is growing stronger, and you can see a lot of people starting to look at building homes, looking to upgrade their homes and looking to sell their homes. We really need a larger number of homes to hit the market because we have customers who can find the home they want and fulfill their dreams of homeownership.
Theodore W. Tozer: It has put pressure on our cost structure, as we seek to monitor new kinds of risks being posed by the Issuer base for Ginnie Mae MBS. We have seen traditional banks, our traditional Issuer, move out of the mortgage market, largely to due to repurchase risk posed by federal regulators and other government entities. As a direct result, independent mortgage banks have filled the void in the primary market. Indeed, independent mortgage banks now represent the majority of our Issuer base. However, the transactions they engage in are more complex than those of traditional banks. Thus, we have more points of risk to monitor, and across a larger book of business. Over time, that will drive up our costs.
Reporting Act (FCRA) Certification Program for mortgage company employees, who are referred to as the “end user” of the credit data. The FCRA and other federal and state laws have some very specific responsibilities for the proper use of credit reports that are not only important to fighting identity theft, but also in the proper handling of consumer disclosures when a less than best lending decision is made based on that credit report. Even people that have been in the industry for decades need to make sure they are doing things properly and we encourage everyone in the mortgage industry who has access to credit data become FCRA certified. Any NCRA member can help your staff become SAFC-MLP certified, which stands for the certification of Safe Access for Credit–Mortgage Loan Professional.