Today we speak with NAMB’s incoming president, Fred Kreger about subprime, compliance and the CFPB. Tune in and enjoy!
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CFPB, Compliance Matters, Subprime
Subprime, Compliance and the CFPB
admin - Wednesday January 27, 2016
haha, the thug life shtick was great
You’d do all of us a favor if you found a new word than sub-prime to describe “does not meet Fannie-Freddie standards.” Sub-prime has so much emotion attached to it that it is not useful in describing this segment of the market.
Assuming every originator is a “good guy,” there is a qualitative difference between two loans that are identical except that one is 90% LTV and the other is 40% LTV. The latter loan is risk-free and could arguably be done at a prime rate regardless of other underwriting criteria. I am actually astonished that someone on Wall Street hasn’t started a fund to buy loans <50% LTV with no pricing hits.
Why hasn't this happened……yet?
If you are a professional originator you need to be a member of your professional associations. In California that would be a member of CAMP and NAMB. Strength in numbers!