The Mortgage Bankers Association (MBA) recently hosted its annual Independent Mortgage Bankers (IMB) Conference in Nashville, Tennessee. It was attended by more than 700 professionals from across the country and the sessions ranged from strategy and operations to compliance and risk.
The conference demonstrated the critical importance of maintaining rigorous processes designed to maximize compliance with the increasingly complex regulatory landscape.
Bill Emerson, 2016 MBA Chairman, addressed the conference in the opening general session by encouraging independent mortgage bankers to get active in influencing legislation and policies, government sponsored entity (GSE) reform for example, to ensure their business stays strong. He noted that the industry as a whole needs to continue to ask for clarity from the Consumer Financial Protection Bureau (CFPB) to ensure compliance with the recent regulatory settlements and changes. Mr. Emerson reminded the group of the power in numbers and the impact they can continue to make on the industry.
Other themes across the sessions included increased regulation and compliance concerns, technology and millennials, and fair lending concerns.
The general session featured leaders from Fannie Mae, Freddie Mac, US Department of Housing and Urban Development (HUD), and Ginnie Mae discussing highlights from their organizations, as well as recent changes and perspectives on the current regulatory environment. These speakers were all clear in their message of how important independent mortgage bankers are to their businesses. Data shows that independent mortgage bankers continue to increase their share of GSE lending as larger banks decrease their origination and servicing operations. According to the National Mortgage News Quarterly Data Reports, over the past five years independent mortgage bankers have increased their origination market share almost 30 percent.
Another session discussed strategy and financial implications when independent mortgage bankers consider retaining servicing of GSE investor loans. The recommendation from the panel was to start small, use a sub-servicer, and manage the portfolio closely. The sub-servicer can be used to your advantage to learn about the nuances of servicing GSE loans.
The conference ended with a roundtable discussion of strategies to overcome enforcement challenges and a regulatory super session to discuss the TILA RESPA Integrated Disclosure (TRID) ”Know Before You Owe” implementation and the amendment of Regulation C related to the Home Mortgage Disclosure Act (HMDA) rule that is coming.
Mortgage bankers now operate in a significantly more transparent arena and must continuously demonstrate they are prepared to maintain a commitment to operational and regulatory integrity and discipline. Organizations should evaluate all critical business processes and controls to validate their responsiveness to this increasing complex environment.
For more information on this topic, or to learn how Baker Tilly banking specialists can help, contact our team.