The CFPB is on pause. Will the Bureau ever return? If not, what will be the ramifications for the industry? I gaze into my crystal ball 🔮 for some predictions ...
The Triumphant Return of Countrywide Home Loans
Emboldened by a deleted CFPB, Countrywide Home Loans makes a triumphant return to the mortgage marketplace with a wild suite of old/new products. Back from the dead is the “Countrywide Fast & Easy” (just register pulse reading at application for approval), an enhanced version of the old NINJA Loan (no income, no judgement, auto-approval) … and a brand-new product called the “Pinky Promise Loan”.
Commissions Gone Wild, Season Two
Lenders reinstate the classic points bank commission schemes, allowing LOs to stash points and “credits” earned from closing government loans and other high cost or high-rate products. Reach 10,000 points, and they unlock rewards like a Tesla lease - or immunity from underwriting conditions for a month. Who needs compliance when you’ve got enough points to skip appraisal contingencies and order bottle service at the closing table?
FICO’s Unveils New Slogan: 'Because You Have No Other Choice'
With no CFPB breathing down its neck, FICO doubles down on their monopoly with mortgage lenders with aggressive new marketing. TV and streaming ads are launched featuring a montage of confused borrowers trying to find alternatives, only to be met with empty Google search results. FICO’s tagline flashes across the screen: “Your options are as nonexistent as our competition.”. They also roll out a new “pay to play” product. For $1 per point, FICO lets you “rent” the score you need for any application. Warning: Terms may include financial regret.
"The RESPA-Free Realtor Referral Rewards Program'"
Without RESPA enforcement, lenders roll out "Swipe for Referrals" loyalty cards. For every mortgage client sent their way, realtors earn points redeemable for vacations, luxury watches, or cash payouts disguised as “consulting fees.” Hordes of buyers agents that ran for the hills in the wake of the NAR settlement come flocking back to the business as loan referrals suddenly come with more perks than an NBA player’s sneaker contract.
Ishbia Issues Another Edict
Still reeling from dealing four 1st round picks, four 1st round pick swaps, six second round picks, Mikail Bridges, Cam Johnson, and Chris Paul for Bradley Beal and Kevin Durant … United Wholesale CEO Mat Ishbia once again demands his customers “bend the knee”. Ishbia threatens to stop doing business with mortgage brokers that sell loans to competitors Caliber Home Loans, Penny Mac, NewRez, Plaza, PRMG, Equity Prime, and AFR. “The business advantage of being a mortgage broker is having access to many different lenders products and pricing,” said Ishbia. “By eliminating brokers ability to sell to all of our vastly inferior competitors and to essentially become retail net branches of United Wholesale, everyone wins. Especially United Wholesale.”