Former CFPB Execs Start Mortgage Company Targeting Non-Qualifiers

A former Consumer Financial Protection Bureau executive and his colleagues are now launching their own mortgage company, concentrated on “non-Qualified Mortgages.”

The company, Fenway Summer, will be led by former CFPB Deputy Director Raj Date with former CFPB Chief of Staff Gary Reeder leading the company’s consumer advisory business. The focus will be on those borrowers who do not meet the standards for “qualified mortgages,” as set by the CFPB under rules scheduled to go live in January 2014. 

“Fenway Summer is devoted to rebuilding American consumer finance on a foundation of trust” Mr. Date said. “For too long consumer finance has been seen as a zero-sum game—where either banks would win or consumers would win. At Fenway Summer our work is guided by the principle that products designed to actually serve consumers will be profitable, sustainable, and earn customers’ long-term trust.”

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The lender’s focus will be lending to borrowers who may otherwise have a difficult time qualifying for new mortgages under the current lending environment, its founders say. 

“It is way too hard for good customers to get good mortgages,” Date said. 

The firm comprises both an advisory business and a new business incubator that will focus at first on the residential mortgage market. 

Written by Elizabeth Ecker

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  • So let’s get this straight. Mr Raj from the CFPB is starting a company to lend to borrowers who do not qualify for traditional mortgages. Isn’t that what got us into this mess in the first place? Isn’t that one of the reasons the CFPB was created?
    The “American Dream” Everyone is ENTITLED to own a home.

  • can someone say “hard money!” Will be interesting to see where their funding comes from and what the ltv, rates and fees will be for those “less qualified?” This is not a new niche market, just one that garners more foreclosures. All from former heavy handed regulatory minions that prided themselves in enforcing “fear to lend” in the mortgage industry… how ironic.

  • Well, talk about capitalizingon past positions and privileged information as well as some prime contacts?

    It will be very interesting in how they are going to structure the operation. We are going to be talking about the old sub-prime type lending and definitely scratch and dent product!

    Are they going to operate as a broker, lender or what? Are they going to tap into the secondary, deal with private sources or deal with institutional investors?

    One thing is for sure, because of their past life’s with the CFPB, you know they worked out a deal with players they met in the industry. Guess the CFPB didn’t pay enough dollars!

    John A. Smaldone

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