Mortgage Bankers Association is set to hold their annual convention for this year and many topics are in line to be discussed. As the new mortgage policy has already taken into effect, what will be the significant changes in the mortgage industry the policies will bring?
According to nationalmortgagenews.com, Terry Moore, senior managing director at Accenture Credit Services said "Everybody and their brother will be asking each other 'How's TRID going with you?'"
Many issues are needing discussion on the said convention. One of the topics that needs to be discussed is the strategies that needs to be done to help mortgage lenders amidst the final Dodd-Frank Act implementation.
The effects of the new policies are still unclear for the next two years but mortgage lenders and mortgage bankers are devising their new financial plans on how to budget their resources for the coming years. Rick Roque, managing director of retail lending at Michigan Mutual, a national retail and wholesale lender based in Port Huron, Michigan, said "Everybody's going to be on the lookout for what the new normal looks like."
Different mortgage lending companies are adjusting their manpower, operation costs and resources to minimize any delays brought by the new policies but most of them are unsure whether it is a viable investment whether for long- term or short- term.
Also, though it's feasible that changes in process will not cause any delays or problems, many are still concern "about other compliance requirements, including increased enforcement of fair lending regulations."
According to collectioncreditrisk.com, "as operational costs continue to rise and the Federal Open Market Committee considers a rate hike that could further hamper profits, wary lenders are sticking to a "batten down the hatches" mentality that limits new initiatives to technology and process changes that increase efficiency and reduce credit risk" which can mean that changes in technology in mortgage industry will not be a popular option among the lenders. Most of them are still putting their trust on their old ways which they deemed to be more effective.
However, other investors are willing to take risks in financing underserved borrowers to initiate competition in the market.
What can you say about the effects of the changing process in mortgage industry? Share it in the comments!
