Lawyer and published author, Rubin is currently taking time off to focus on writing. Formerly Senior Counsel and Chief Advisor, Regulatory Policy, on the staff of the House Financial Services Committee; Partner at Hunton & Williams; Enforcement Attorney at the Consumer Financial Protection Bureau; Senior Special Counsel at the US Securities and Exchange Commission; Managing Director at investment bank; and criminal prosecutor.
Our hugely popular blogpost titled: "Former CFPB attorney pretty much just confirmed the worst fears of the mortgage industry," hit a nerve with many in the mortgage industry. Now the author of the original piece adds his thoughts to our thoughts. Read more on the ongoing discussion right here.
In the aftermath of the financial crisis, low interest rates and strict capital requirements combined to make servicing a losing proposition for many banks. The sharp glare of regulators didn’t help either, as banks and nonbanks navigated the already thankless waters of servicing with a new target on their backs. But all that changed abruptly in the fourth quarter of 2016 with the one-two punch of a Trump win and a rate hike by the Federal Reserve.
Singling out the law that created the CFPB generated a backlash from Congressional Democrats, but it remains to be seen what Democrats can do to stop the Trump juggernaut. See what Mike Jones of Navigant advises servicers to do in this uncertain environment.
Portfolio managers and investors also have a vested interest in the expansion of the non-QM market. They have an appetite for non-QM assets as they represent an attractive yield opportunity. That’s why we’re seeing more “hold” strategies at work with current non-QM production.