There was close to 1700 registered mortgage bankers at the MBA Secondary Conference last week with easily another 1000 non-registered floating the halls and streets of Times Square in New York City…. I know because many of my impromptu meetings were in the halls, receptions, and on 7th and 8th Avenues. However, if you couldn’t attend the event the MBA did a nice job with their Twitter event hashtag #Secondary15 to keep you up-to-date.

The optimistic mood for many of the participants over-shadowed what we all have survived over the past 10+ years in the mortgage sector. It was almost like many of us never experienced the mortgage meltdown and the ensuing regulation tied in large part to Dodd-Frank. Many of the lenders and investors are talking about innovative products as well as growth plans for the coming year.

Freddie Mac’s Economic Update included an increased estimate for residential 1-4 mortgage originations to come in at about $1.35 trillion. MReport provided a recap.

The MBA revised its estimate from $1.2 trillion to $1.28 trillion.

And for the real optimists, Paul Miller of FBR Capital Markets, is now at $1.5 trillion.

Although refinances are starting to slow down based on the MBA mortgage application index, most predict purchases to remain steady throughout the remainder of 2015.

Let’s talk about the conference takeaways:

— A competitive high LTV jumbo offering is still a big need in the industry.

— Big announcements from the private investor front including new product rollouts specific to non-QM and jumbo product offerings.

— There were at least 4-5 new private investors announcing their intent to start buying loans. Most were non-QM, owned and backed by private equity firms.

— There is still lots of movement in the industry. Lenders and investors looking to expand and grow are actively seeking talented mortgage professionals in key roles. Recruitment and staffing is very critical to their overall success for the next 12-18 months.

— Remedy loans were still a large need for many of the lenders I spoke too.

Top of mind of was…TRID

With the implementation date of August 1 just around the corner for the TILA/RESPA Integrated Disclosure Rule (TRID), the Consumer Financial Protection Bureau (CFPB) was on the minds of all lenders.

Most are doing testing now operationally. Many wholesalers and vendors/LOS systems claim they will be ready by June or July. Worth a watch is MGIC’s free webinar on the topic of TRID, with special guest David Luna of Mortgage Educators and Compliance.

Prediction on the true impact to closing times and everything else is still anyone’s guess. If this is anything like QM, LO Compensation, Y2K, and any other major event this industry has seen, it could be better than we expect. Still, most lenders felt that the LOs and real estate agents may not completely understand the impact it would have on them in terms of proper disclosures and closing times.

Overall the MBA Secondary Conference was an excellent event this year and I look forward to attending again in the future.

Lloyd San

Lloyd San - Retired MGIC Mortgage Market Manager

A 30-year mortgage industry veteran, retired in 2021, Lloyd San served as Mortgage Market Manager for Mortgage Guaranty Insurance Corporation (MGIC). Overseeing a national effort, he was responsible for managing all client-related capital market activities in the areas of bulk and correspondent loan referrals, investor introductions, structured products, whole loan sales, as well as product and personnel introductions.

In addition, he is chairman of the California Mortgage Bankers Association, Secondary Marketing Executive Committee and also serves on the Western Secondary Conference Committee.

A graduate of San Diego State University in California, Lloyd received his MBA in Financial Management from National University. He also holds a California Real Estate Broker’s License.

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