In 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.
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…