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Over the past few years in the mortgage industry, many of us have seen the Consumer Financial Protection Bureau (CFPB) as the “bad guy.” The excessive regulations have, without a doubt, made doing business in the industry much more difficult. Investment in compliance has more than doubled for most companies. Technology has to be developed. New jobs have to be created. The expenses just keep piling up. The CFPB may be helping some consumers, but has it done any good for the industry?
On the Aug. 31 episode of my Lykken on Lending Internet radio show, my colleague Paul Muolo mentioned a recent study that had come out. Apparently, since the creation of the CFPB, borrower anxiety has gone down significantly. Now, on the surface, they may seem like it's not that big of a deal for the industry. But, think about it—the less anxiety prospective borrowers feel, the less resistance loan originators are likely to receive. Perhaps the CFPB has done some good for the industry—it has reestablished some trust for the industry in the eyes of borrowers. And that we desperately need.
Here's the thing about the CFPB. I've said it before and I'll say it again—we in the industry need to learn to work with the CFPB. Seeing it as the enemy is only going to make things more difficult for everyone. Has the CFPB gone too far and overreached its bounds? It's quite possible. But we need to understand that it's not all bad. There are some cases in which the CFPB can help both consumers and the mortgage industry. In addition to lobbying for greater freedoms in the industry, we should also be on the lookout for common ground.
David Lykken is 40-year mortgage industry veteran who has been an owner operator in three mortgage banking companies and a software company. As a former business owner/operator, today David loves helping C-Level executives and business owners achieve extraordinary results via consulting, coaching and communications, with the objective of eliminating corporate dysfunction, establishing and communicating a clear corporate strategy while focusing on process improvement and operational efficiencies resulting in increased profitability. David has been a regular contributor on CNBC and Fox Business News and currently hosts a successful weekly radio program, “Lykken on Lending,” that is heard each Monday at noon (Central Standard Time) by thousands of mortgage professionals. He produces a daily one-minute video called “Today’s Mortgage Minute” that appears on hundreds of television, radio and newspaper Web sites across America. He may be reached by phone at (512) 501-2810 or by e-mail at [email protected].