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gauging the pulse of the industry continued from page 81

Questions 65 and 66 sought feedback on FHFA Director Watt and HUD Secretary Castro. They scored a 5.7 and a 3.7 respectively, with a top score of 10. Watt and Castro had respective high scores of nine and seven for their overall job performance. Question 67 inquired whether the respondents favored Sen. Corker’s “Jumpstart GSE Reform� legislation. Eleven support it, five don’t and eight others were unfamiliar with the Senate Bill. Banks and non-banks were at the

indicated that they expect thinner margins next year, and 13 of 23 are dissatisfied with progress on the SS and the CSP. There you have it, a summary of what was learned from the survey research project at last week’s convention. Finally, my thanks to Tom Millon of the Capital Markets Cooperative for sponsoring this latest survey of top industry issues and topics. Tom LaMalfa is a 35-year veteran mortgage-market analyst and researcher. He has done pioneering work in the areas of secondary markets, wholesale mortgage banking, mortgage brokerages, financial benchmarking and GSE reform. He may be reached by e-mail at


The NAWRB Women’s Homeownership Initiative (WHI) is dedicated to increasing women homeowners throughout the country. As women achieve homeownership, they will secure their progress and pave the way for future generations to do the same. Along with our advocacy work and WHI, NAWRB will champion the following goals in 2016:          • Increase mentorship among women, thereby helping future generations attain the security to succeed and grow • Increase vendor diversity and the utilization of women-owned businesses across the industry • Decrease women’s poverty level—30.9 percent of female-headed households with no husband present live in poverty, 40.5 percent of these households have children under 18 years of age        The professional world is evolving and NAWRB is here to help ensure that this change continues. Join NAWRB’s movement today!


n National Mortgage Professional Magazine n JANUARY 2016

Are expanded HMDA reporting requirements good for lenders, asked Question 51? Only three of 23 respondents said the expansion was a positive. Question 52 asked if the execs thought the homeownership rate would increase substantially in the next five years. Nearly three times as many said it would not grow substantially as answered that it would. Questions 53 through 59 dealt with different aspects of TRID. Six answers were sought: 1) How big of a challenge was it preparing for the October enactment date; 2) Was the real estate industry ready for its commencement; 3) Will 30-day closings disappear for some period of time; 4) Would loan locks be delayed; 5) How long will it take until it’s back to business as usual in the postTRID world; and 6) Are you expecting considerable backlash from consumers who experience delayed closings. As for the size of the challenge preparing for the October start date, it was an 8.8 on a scale to 10. The range was from five to 10. There were 16 scores above an eight. Was the real estate industry ready for TRID? It was not ready, said 19 of 23 surveyed. Yes, TRID will reduce the number of 30-day closings for a while, stated 15 of 24 execs; it will also slow lenders’ moves to lock, indicated 12 of 22 execs. More than twice as many respondents thought there would be significant consumer backlash from TRID. On average, the group indicated the return to normal would take 4.9 months. Question 56 wondered if those surveyed thought nonbanks would continue to be big buyers of servicing. Yes they will say 16 execs, compared to six who thought not and two who didn’t know. Question 60 questioned if the execs felt the recent Supreme Court decision on disparate impact theory would increase lenders’ exposure to legal actions. Three times as many of those surveyed agreed that heightened exposure would result from the ruling. Does your shop listen to the monthly briefings on risk from the International Center on Housing Risk, wondered Question 61. No we don’t, reported 20 of 22 execs responding. Question 62 asked if housing affordability was seen as waning nationwide. It is, reported 13 of those surveyed versus nine who thought not and two who confessed not knowing. Are you familiar with the Wealth Building Home Loan program, Question 63 queried? Yes we are, said 12 execs, compared to nine others who were unfamiliar with the mortgage product. Question 64 asked how satisfied the execs were with the GSEs new g-fee and LLPA structure. The response scored a 4.9 on the 10 point satisfaction scale. The range of answers was from one to seven.

heart of Question 68 and 69: 1) Has a huge amount of market share been lost by the largest banks; and 2) Do those surveyed expect the big banks to become more aggressive mortgage lenders in 2016? And what were the lenders’ responses to the two queries? All 24 execs agreed that a massive amount of share has been lost to the non-banks, but only five of them expect big banks to get more aggressive next year. The final two questions, Questions 70 and 71, queried about whether pricing competition would thin margins in 2016, and if they were satisfied with the progress being made on the Single Security and the Common Securitization Platform. Three times as many execs

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National Mortgage Professional Magazine January 2016  

National Mortgage Professional Magazine January 2016  

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