As I am seeing “top five” (or ten) lists everywhere right now, I thought I’d publish my own. Here are the top five influences (in my brain at least) on mortgage lending in 2015.
1. LOW RATES PART 6 (“Part 6” b/c rates have remained low for a shockingly long six years). Rates stayed so low primarily b/c the world economy remained very weak and inflation remains largely nonexistent.
2. TRID (TIL-Respa Integrated Disclosure). Everyone panicked about these new disclosure requirements, but, as per usual, the fears were overblown. A few days were added to escrow periods, but the new disclosures are better and clearer.
3. CFPB. Be perfect; the CFPB expects and tolerates nothing less. At JVM, we don’t so much as press elevator buttons unless we are certain it is compliant. It costs us tens of thousands in attorney’s fees, but we can’t afford not to spend the money.
4. PURCHASE VOLUME STRONG, AND VALUES CLIMB. It was amazing to see values continue to climb in very hot California markets. The “Planet Money” podcast suggested we may be in a bubble (see previous blog).
5. MARKETING SERVICE AGREEMENTS (MSAs) UNDER SCRUTINY. The days of large mortgage companies and banks simply paying real estate brokers for the right to be an “in-house” lender are over. The CFPB does not like those agreements. MSAs need to be legitimate marketing efforts that benefit both the lender and the Realtors; they cannot be just a fee for a referral program.
Founder/Broker | JVM Lending
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