Mortgage Originators Say Regulation will be Biggest Challenge of 2013—By Far

The next phase of regulation stands to be the biggest concern loan originators face in 2013—bigger than interest rate uncertainties, and even big banks’ abilities to attack the purchase market with thin margins. 

And even though a majority of mortgage loan originators see their volume staying the same or increasing in the coming year, this regulatory uncertainty poses a major challenge, they report in the results of Hammerhouse’s 3rd Annual Originator Opinion Survey, which gained the opinions of 350 mortgage originators nationwide. 

A national recruiting firm with mortgage sales at its core, Hammerhouse’s survey asks originators their opinions on critical issues facing the mortgage industry.


A full half of the survey respondents said they were most worried about upcoming policy changes, with their next biggest concern being the rising interest rate environment, at 18% of responses indicating they are most concerned about rates.

The vast majority of respondents are accustomed to change as more than 80% reported having been in the mortgage industry for at least 10 years. 

Uncertainties aside, however, when asked how they believe mortgage originations will fare in 2013, 44% of originators said they expect an increase from 2012 levels, whereas 27% anticipate a decrease from last year’s levels. 

Additionally, 28% of originators believe 2013 originations will remain largely unchanged from 2012 levels.

Written by Jason Oliva

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  • Regulation, why, why does the fear of regulations keep hanging over our industry. How much more regulation do we need and what regulation is needed. Really now, can anyone honestly tell me what more in the way of regulations we need.

    When was the last time any of our so called regulators and those on the board of the CFPB looked at what regulations we have tucked away, when?
    Also, has anyone or any committee studied how many of the regulations we have on the books today are being enforced?

    I would love answers to my questions, I challenge our regulators and those on the board of the CFPB to answer my questions with honesty and authority. You know who I am, you know you can give the answers to all my questions right through this publication.

    The editor will be more than accommodating. I will be on the lookout for an answer! I say there is no answer to give. We need no more regulations.

    As far as attacking the purchase market with thin margins, we will have to wait and see?

    John A. Smaldone

    • EricSD,

      This is a fear survey.

      If you asked me when I was in grade school what my biggest fear was. Even though I am among the oldest segment of Baby Boomers, it was not the atom bomb since the schools I attended ignored that threat.

      It was actually the movie Frankenstein which I watched by myself when I was five years old late at night while my parents were having a party in our house for their friends. I held that fear for over seven years.

      Most of the time fear is based on the uncertainty of the future. Regulation is a huge unknown for the forward industry even more than ours.

      Of course then there is the issue of how many reverse mortgage originators were included in the survey. Was it 1%? That is doubtful.

  • I’m guessing Jason Oliva is lumping HUD in with “regulators”. Most originators have to be worried about the program changes coming in September/October of this year. At this point, there’s no telling which direction HUD will have to go and the impact on our volume. Either way, it won’t be positive.

    • Matt,

      Just how many reverse mortgage originators do you actually think were included in a survey of just 350 loan originators? We are a dinky, dinky part of the entire mortgage industry.

      For instance you know that sleeping giant we hear so promoted in our industry, well, it could reach 2,000 endorsements this year. What percentage of purchase money mortgages do you actually think that is? 0.0005%?

      Jason is reporting on trends he reads about. It is interesting but has minimal value in our industry other than finding common ground with originators in the forward segment of the mortgage industry.

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