There’s strength in numbers, and nowhere is that more apparent than at a major national convention. However, the real estate and mortgage industries are inherently local and there’s no better place to get a feel for what’s really happening on the ground in these industries than at a state convention. Next week, Dodd Frank Update will head to Columbus, Ohio, for the Ohio Mortgage Bankers Association (OMBA) Annual Convention, May 13-15.
OMBA Executive Director Marianne Collins told Dodd Frank Update that the housing recovery appears to be uneven in Ohio so far. She recently discussed local market issues with members of the Ohio Association of Realtors.
“The people from Columbus are saying that they’re just absolutely swamped, but other people around the state say they’re not seeing it,” Collins said.
Just like everyone else, Ohio mortgage professionals are also struggling to implement the Consumer Financial Protection Bureau’s (CFPB) new regulations. Collins serves on the national MBA committee that reviews the CFPB’s rules and she was among a group of MBA members that visited the bureau last month. Collins said the MBA is particularly concerned about the fees included in the qualified mortgage (QM) rule’s 3 percent cap on points and fees.
“First of all, we don’t think loan officer compensation should be included,” Collins said. She added that the rule could serve to penalize companies for paying more to employ experienced originators.
“It’s going to force lenders to use the more inexperienced, lower paid loan officers,” she said.
The group also discussed issues related to the inclusion of broker compensation, affiliated title fees and loan level price adjustments paid to Fannie Mae. However, Collins said the CFPB wouldn’t commit to amending the rule.
“[The CFPB] feels that making any changes means they would have to re-propose [the rule] and they’re not really open to that,” Collins said. She added that the MBA is encouraging the bureau not to let the regulatory process interfere with getting the rules right.
Lenders will be required to comply with most of the bureau’s new mortgage rules in January 2014. Other rule provisions kick in as early as next month. As such, the final day of the OMBA convention will be entirely devoted to CFPB compliance.
“We try to offer an elective at the convention — something that the non-depository loan officers can get continuing education credits for — and it seemed like perfect timing to do the CFPB,” Collins said.
The conference also includes a number of sessions on enhancing loan production and sales. Debra Still, chairman of the national MBA, will speak on the state of the mortgage industry. Ohio Republican U.S. Rep. Steve Stivers, a key member of the House Financial Services Committee, will deliver the keynote address.
The conference will take place at the Hyatt Regency Hotel, 350 N. High Street, Columbus, Ohio.