July 22: Retail & Ops jobs; upcoming events; have a say on gfee levels; the cost of enforcement actions inc. one against an AMC

As expected, the CFPB issued a final rule announcing the delay of the effective date for TRID from August 1, 2015 to October 3, 2015. “The CFPB believes that moving the effective date may allow for a smoother transition to the new rule for both the industry and consumers.” A copy of the final rule is available here.
On to something in the here and now! “New Penn Financial is a dynamic and rapidly growing mortgage lender with over 1,600 employees nationwide. Founded in 2008, and licensed in 48 states, the company, a Shellpoint Partners company, and its reputation has grown substantially under the guidance of a management team with years of experience in the mortgage industry. New Penn Financial has been recognized in the top 20 Third Party Originations Lenders and was recently voted as being a great mortgage lender to work for by sales professionals. New Penn Financial is hiring talented, driven Mortgage Professionals including Retail and Call Center LOs, Mortgage Processing Leaders, and experienced Wholesale Account Executives in Plymouth Meeting, PA and Marlton, NJ in order to build out their team of Inside Account Executives selling to mortgage brokers across the country. The position does not require state licensing – all that is required is strong mortgage product & process knowledge and the out-going personality and drive to bring in new business. We are also looking for experienced Wholesale Account Managers and Underwriters in Marlton, New Jersey, Plymouth Meeting, PA, Milwaukee, WI, Concord, CA, and Alpharetta, GA. For more information, or if interested, please submit confidential resumes to Aubrie Cusumano, Senior Corporate Recruiter.”


And in product news, “One of the nation’s top broker channels, Pacific Union Financial’s Wholesale division, just enhanced its jumbo pricing to provide brokers with more and bigger opportunities for their business – certainly an enhancement not to be missed, so contact your Account Executive today. Pacific Union is hitting it big, so to be a part of a team that knows success, send your resume. Its Wholesale Channel is hiring DE Underwriters in Santa Ana, CA, Irving, TX, and Charlotte, NC, as well as Junior Underwriters and Account Executives. Visit Join Our Team, or send your resume to Corporate Recruiter Susan Trejo.


Upcoming events and training? Take your pick – there are some good ones coming up.


The rising average age of loan officers is a hot topic in the mortgage industry. There are countless discussions about how to recruit the elusive millennial in order to balance the aging workforce. Learn how to source, recruit and retain millennials in the next Leadership Lessons webinar from XINNIX, The Mortgage Academy, Millennials in the Mortgage Business on Thursday, August 6th at 1PM EDT. As the premier provider of leadership and loan officer training, XINNIX’s insights will be invaluable. This live webinar is complimentary, but registration is required.


Mortgage Coach’s Dave Savage will be interviewing  #1 TEDtalk inspirational expert, Simon Sinek, today at 1PM Eastern. With over 22 million views on “How great leaders inspire action,” Simon explores how leaders can inspire cooperation, trust, and change. Dave’s interview will focus on helping Mortgage and Real Estate professionals develop a more passionate and personal purpose to help families. You don’t want to miss this event, as space is limited. View Simon’s TEDtalk and sign up for event here.


Audio Solutions 2 is providing a live webinar on August 4th with expert speaker Kris D. Kully who will provide up-to-date information on the regulations of the Consumer Financial Protection Bureau (CFPB) that require lenders to determine the borrower’s ability to repay. Join this session to ensure you’re on top of everything related to “QM.” This session will cover topics such as summary of the Ability to Repay/Qualified Mortgage rule, updates to the requirements, and possible changes on the horizon. Click the link for event description and registration information.


On Wednesday, August 5 at 1p.m. EDT, the CFPB will be hosting a forum on the “Know Before You Owe Initiative” on eClosing. The forum will feature remarks from Director Richard Cordray, and include a panel discussion with consumer groups, industry representatives, and members of the public. This CFPB event is open to the public and requires an RSVP.


There is a free webinar on August 12th at 11:00 AM (PST) from California MBA Commercial Legal Services Committee. Topics include: General overview on California’s anti deficiency protections – presented by Robert M. Zeller, Musick, Peeler & Garrett, LLP, Issues in Guaranties – presented by Gordon L. Gerson, Gerson Law APC, and Foreclosure Bid Strategy – presented by Scott Rogers, Rutan & Tucker, LLP. To Join the Teleconference Portion, dial 1-800-351-6802, when prompted by the operator, provide the passcode:  4378. Click here to join the web presentation.


This year, keynote speakers for CMBA’s regional loan servicing conference in San Diego include Perry Hilzendeger of Wells Fargo Home Mortgage, Mark Fleming from First American and Dana Dillard from Nationstar. These industry experts as well as a panel of servicers talk about today’s mortgage servicing environment and what they see on the horizon. You can start the conference out right by joining us for golf on Sunday, August 2nd at the Riverwalk Golf Club in San Diego!  Register now for CMBA’s 20th Annual Western States Loan Servicing Conference August 2nd-4th.


Mortgage Bankers of the Carolinas is now accepting early registration for its 60th Annual Convention in October. For more information, click the link for MBAC 60th Annual Conventional.


No sooner does this commentary discuss gfee issues yesterday than suddenly the U.S. government announces that it is considering using gfees to fund a highway bill. Yes, I know I am simplifying things, but the MBA jumped in to prompt everyone to contact their Senator to voice complaints. “We are writing to ask you to take action on an urgent issue related to housing finance. This week, the Senate will vote on a highway bill – but to pay for this new spending, the legislation proposes to extend (for an additional four years) the increase in Fannie Mae’s and Freddie Mac’s guarantee fees (g-fees) that was originally enacted in 2011 and set to expire in 2021.


“G-fees are a critical risk management tool used by Fannie Mae and Freddie Mac to protect against losses from faulty loans. Increasing g-fees for other purposes effectively taxes potential homebuyers and consumers looking to refinance their mortgages. That increase has harmed homebuyers and consumers – and continues to do so every day. Please contact your Senators to make clear to them that homeownership cannot, and must not, be used as the nation’s piggybank. Please click HERE to go to the Mortgage Action Alliance (MAA) homepage and click on the “Take Action” button to get started. If you don’t have, or have forgotten your username and password, click on “forgot password” to retrieve it. If you are not a MAA member, you will need to join MAA to take action. Please contact Annie Gawkowski at 202-557-2816 or agawkowski@mba.org  if you need assistance.”


As you know, the CFPB is now including narratives from dissatisfied consumers in its public complaint database. This could pose serious problems for our industry and my colleague Garth Graham recently wrote about this on for the new STRATMOR Group website. He made the following points. Despite the fact that it cannot verify many of the details provided by consumers, the Bureau started allowing your past customers (and even those who never became your customers, including Realtors!) to post what they want about your company online. The identity of those that post is anonymous but the lender is clearly identified. You’ve read the news but have you read any of the complaints? I have and this database poses a significant threat to the industry.


“It’s natural for a dissatisfied person to want to tell their story and be heard. It’s far better for the lender to get this story and provide the information the borrower needs to better understand the situation. If this is done soon after closing, the lender is much less likely to see an inflated version of the issue show up on the CFPB’s website. This requires the lender to survey each borrower as soon after the close as possible, using a reliable method that provides the borrower with a sense of objectivity.


“In fact, we have found that happy customers are willing to allow their positive comments to be posted online in the form of a testimonial. That is much better than having only the negative comments out there. In fact, that viral marketing is the antidote to the virus of the complaint database. Here is the story.”


And I received this question. “Rob, does the CFPB check the accuracy of the consumer complaint in its database and published for the public to view?” No, it does not. Can it lead to a rise in class action lawsuits as people “so inclined” mine the data, manage to track down the people posting complaints, and then file class action lawsuits, thus miring in the industry down in further legal quicksand? Sure it can. Astute analysts are quick to point out that although the larger servicers and originators receive the lion’s share of the complaints, one must look beyond the numbers are compare the share of complaints versus the market share of the business, and the rate of improvement.


Consumer Financial Protection Bureau Deputy Director Steven Antonakes has announced that he will be stepping down from his position, citing “a desire to be closer to family.” Antonakes joined the bureau in November 2010 and began his current position in September 2013.


Speaking of the burden of regulation, enforcement actions have hit the highest level in the second quarter of the year due to more regulatory intervention according to the Banking Compliance Index. The Regulatory Operations Center found that more than 200 enforcement actions were issued against financial institutions between April and June, which is the highest level within the past 20 years. Regulatory activity increased by 18 percent in the second quarter and on average, most financial institutions had to spend an additional $41,471 and 582 hours– or about 1.72 full-time employees to manage the new regulatory changes, which is an $11,000 increase from the first quarter. The average hourly wage for compliance professionals increased more than $2 between the first and second quarter this year alone. For example, 73 changes in 1,644 pages cost financial institutions $41,471 in the second quarter of the year, whereas 75 changes in 3,000 pages cost $34,755 during the second quarter of 2014. The financial burden due to regulatory changes will continue on its upward trend, causing many institutions more financial stress.


And this reaches down to the state level, as evidenced by Louisiana’s recent action against appraisal company Coester Appraisal Management Group.


Turning to the markets, without international turmoil there just isn’t much to talk about – so I won’t waste your time. After Monday’s close, President Obama announced that he would nominate Kathryn Dominguez, an international economist at the University of Michigan, to be a governor on the Federal Reserve Board – the Senate Banking Committee has to weigh in on it. The 10-year did hit 2.40% in response to a sell-off in equities after poor earnings news from IBM and United Technologies.


There is no major news today either. We’ve had the MBA’s application data (little change from the prior week – stead as she goes), and ahead of us have May’s FHFA Housing Price Index and June’s Existing Home Sales. The latter is projected to increase slightly to 5.40 million annualized rate from 5.35 million. The benchmark 10-year closed at 2.33% and in the early going we’re unchanged on the 10-year and agency MBS prices.



As so many people in residential lending spend half their time actually working and half their time opening Medicare and AARP ads, it is a good time for some doctor’s advice. (Part 2 of 2.)

Q: What are some of the advantages of participating in a regular exercise program?

A: I can’t think of single one, sorry. My philosophy: No pain…good!

Q: Aren’t fried foods bad for you?

A: YOU NOT LISTENING! Foods are fried in vegetable oil. How can getting more vegetables be bad?

Q: Will sit-ups help prevent me from getting a little soft around the middle?

A: Oh no! When you exercise a muscle, it becomes bigger. You should only be doing sit-ups if you want bigger stomach.

Q: Is chocolate bad for me?

A: Are you crazy?!? HEL-LO-O!! Cocoa bean! Another vegetable! It is the best feel-good food around!

Q: Is swimming good for your figure?

A: If swimming is good for your figure, explain a whale to me.

Q: Is getting in shape important for my lifestyle?

A: Hey! ‘Round’ is shape!


Well… I hope this has cleared up any misconceptions you may have had about food and diets.





(Copyright 2015 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)

Rob Chrisman