Last week I received this interesting note about the Mortgage Bankers Conference in Chicago:
“I was at the MBA conference, and I loved it b/c it was fascinating to see the different perspectives you get from Mortgage Bankers versus those you get from the Realtors or Mortgage Brokers (the people who frequent the conferences I usually attend).
I very much enjoyed the panel discussions because the information was not stale to me.
Here is my biggest take-away: The current crop of seasoned managers and owners has been out of the trenches too long to see what is really going on in today’s lending environment.
And this results in two big flaws in judgment/assessment.
(1) They are too “accepting” of new regulatory constraints. Too many seem to embrace or grudgingly accept the new rules either already here or coming our way, no matter how destructive or irrational. HVCC guidelines, comp rules, and disclosure requirements are often ridiculous, costly and harmful for the consumer because they cause us to lose locks and/or preclude us from crediting fees. But, unless one is “in the trenches,” this is often not fully absorbed. Everyone should be “fighting mad”.
And (2) loan officers and most industry professionals “of yore” are simply too “dumb” (for lack of a better word) to close loans in today’s environment. We let all of our less than brilliant people go years ago, and we now only hire college grads with 3.5 GPAs or better. We test them before we hire them too. And we are rolling. A company can market and originate all it wants, but more business is worthless if nobody is capable of closing the many the tough deals that surface today. The ONLY firm I saw at the conference that was aware of the above facts was Academy Mortgage. Others are so far behind the curve it was shocking.”