Do You Want to Help Make the Rules?

By
Mortgage and Lending with Extraordinary Processing MB-116250

Yesterday, I attended the Mortgage Broker Commission meeting and the Rulemaking meeting for the Washington State Department of Financial Institutions. As a contract loan processor in WA State, I am required to be licensed as a loan officer or mortgage broker. I chose to become licensed as a mortgage broker as that allows me the ability to process for multiple brokers without having to license my location for each broker that I process for. As a licensed broker/originator, the outcomes of the meetings directly affect me and my business as well as my clients and their business.

The commission meeting was chock full of interesting and useful information and I was disappointed that there were only 13 people in attendance. After the meeting, I spoke with Deb Bortner of the DFI and found out that only 16 people RSVP'd. For those that are not aware, three of the four annual commission meetings are held on the west side of the state and the summer meeting is held in Spokane.  I hope that at least one meeting of the year will continue to be in Spokane, but if the numbers in attendance don't improve, that may not happen. For the life of me, I can't understand why more originators in the Spokane area did not attend.

By far, the hottest topic of the meeting was the required Disclosure Summary that clearly states the loan information and fees charged. This is the form that clearly discloses the YSP and attempts to define it. The sampleform that DFI currently has states:

 

            "Your broker will receive a "yield spread premium " of up to $_____*.

            * "Yield Spread Premium" or "YSP" means a payment to a broker by a lender for originating a mortgage loan with a higher interest rate. The YSP should reduce the points and fees normally charged the borrower for a market rate loan. A YSP is separate from a mortgage broker fee. Ask your broker for a comparative loan without a YSP. "

 

Needless to say, this statement was extremely opposed by most of those in attendance at the rulemaking meeting and those that sit on the commission board (as they are brokers as well). It seems to benefit bankers and penalize brokers by emphasizing the YSP charge that banks are not obligated to disclose.  I made my comments as did others, but with only 13 people other than commissioners, there were not as many people on record opposing it as I would have liked. I hope that those that did not attend are concerned enough to contact the DFI and submit written comments, though I am not sure if they will be accepted.

I strongly encourage all originators in WA State to attend the Mortgage Broker Commission meetings in the future. This will allow our voices to be heard prior to the new rules going into effect. It will also keep you up-to-date on the changes in the industry. If you are not able to attend, you can always visit the DFI's website http://dfi.wa.gov/cs/mortgage_commission.htmand listen to the Podcasts or review the minutes of the meetings.

Posted by

business port 

Libby Cousins

Extraordinary Processing - Spokane, WA

Contract Mortgage Processor, licensed in WA

phone:   509-465-5585

email:    LCousins@comcast.net

Comments (12)

Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Libby, It's a shame more people did not come to the meeting and voice their opinions as well....it sounds like they could have been very useful and learned a lot at the same time.  Good posting, maybe more will attend the next one.

Aug 07, 2008 01:54 PM
Michael Mullin
Caliber Home Loans NMLS 15622, Originating loans in CA, OR and WA. - Bend, OR
NMLS 11911 - Branch Manager, FHA, VA, USDA, Conv

Libby, I attended as well and unfortunately missed most of the information - the invitation I received from the State of WA DFI said the Rulemaking was going to be discussed at 11:30am.  I showed up "early" at 10am, just in time to hear the commission decide to cancel the 11:30 meeting.  I guess they all had flights back to the West side of the state!

While I agree the turnout was poor I have to wonder what kinds of regulations DFI violated by cancelling the meeting?  I guess it was not an "official" hearing so they had no obligation.  I found it ironic that when I returned to the office that afternoon (I had an hour drive each direction) I had an email from DFI that was SENT at 10:55am notifing us of an amended start time - the meeting would now be held at 11:00am.  That's pretty funny - I guess someone from DFI was tyring to cover their rear ends.

Yes, more brokers should attend these meetings and participate.  Hopefully our state broker association is fighting the YSP disclosure (as currently proposed).

Aug 08, 2008 04:19 AM
Libby Cousins
Extraordinary Processing - Spokane, WA
Contract Mortgage Processor, licensed in WA

Michael, I laughed when I got that email as well. They must have been typing it as the decision was made.

When I spoke with Deb after the meeting, she did allude to the fact that they may consider changing the venue for the summer meeting since there were so few people that attended. She said that, for the turnout, it wasn't worth all of the travel for everyone. Last year, about 30 people showed up and I thought that turn out was sad (though she didn't) but this year it was really disappointing. I am trying to encourage them to return even if it means that I have to go out there and personally invite (read encourage) local brokers to attend next summer's meeting!

I am so glad that you attended. Did you get a chance to sign in? The meetings deal with so much important information that is relevant to us as originators/brokers, that I don't know why it is not a priority for more people to attend.

Aug 08, 2008 04:46 AM
Libby Cousins
Extraordinary Processing - Spokane, WA
Contract Mortgage Processor, licensed in WA

Carole, thanks for stopping by! I do intend to form a "plan of attack" to get more brokers there next year if possible!

Aug 08, 2008 04:47 AM
Marie Ogle
Mortgage Processing Solutions - Spokane, WA
Contract Mortgage Processor

Great Post!  I attended the meeting last year for the first time and was pleasantly surprised to find how informative it really was.  Because I learned so much information I take it upon myself to listen to the other meetings via podcast.  It really is a great way to keep on top of the ever changing rules that seem to be effecting our industry.

I too hope to see a much larger turn out next year.  Those who do not attend are definately missing out.

Good luck to you in your "crusade"

Aug 08, 2008 10:16 AM
Marie Ogle
Mortgage Processing Solutions - Spokane, WA
Contract Mortgage Processor

Great Post!  I attended the meeting last year for the first time and was pleasantly surprised to find how informative it really was.  Because I learned so much information I take it upon myself to listen to the other meetings via pod cast.  It really is a great way to keep on top of the ever changing rules that seem to be effecting our industry.

I too hope to see a much larger turn out next year.  Those who do not attend are definitely missing out.

Good luck to you in your "crusade"

Aug 08, 2008 10:17 AM
Libby Cousins
Extraordinary Processing - Spokane, WA
Contract Mortgage Processor, licensed in WA

Thanks Marie! I think we will have a much stronger showing from Spokane next year, especially if we can get other brokers excited about it.

Aug 08, 2008 10:27 AM
Jennifer Lewis
William E. Lewis, Jr. & Associates - Dania Beach, FL

Great post with lots of useful information!  Should you ever have any concerns as they relate to the credit repair industry, please do not hesitate to contact me at (954) 581-5050.

Aug 08, 2008 11:14 PM
Libby Cousins
Extraordinary Processing - Spokane, WA
Contract Mortgage Processor, licensed in WA

Thanks Jennifer!  I will make a note of that as we always seem to have borrowers that need a little help to get the loan they need!

Aug 09, 2008 04:52 PM
Deborah Fisher
Fisher & Company, P.A., Marketing & Creative Strategists - Fort Worth, TX

Don't live in WA state but I found the info in your post most interesting.  I am going to see if there is something similar available here in NE Florida.  Nice to be up on things, and you are right . . . if you don't attend, you have no voice.  Too late to whine about things after, isn't it.

Great post.  I am adding you as an Aasociate.  I looked over your blogs and you are providing a weatlh of great info.

Thanks for keeping us up on your end of the biz.  I look forward to more posts from you!

Aug 15, 2008 05:44 AM
Libby Cousins
Extraordinary Processing - Spokane, WA
Contract Mortgage Processor, licensed in WA

Deborah, I appreciate your comments, thank you! It is so important to be involved whenever possible. I believe that if you don't let your voice be heard during the rule making process by choice, you shouldn't whine about it later.

Aug 15, 2008 01:31 PM
Susan Peters
Dove Realty Inc. - Seattle, WA
The Better it Looks the Better it Sells

Hi Libby,

If more the mortgagebrokers had been as diligent as you, I don't think we'd be in quite the mess we are in right now.

Sep 07, 2008 02:48 PM