Colorado and MSAs; Lender Profitability Figures; Collateral Underwriting Changes

Posted To: Pipeline Press

While the industry waits for the ruling on the CFPB versus PHH case to give more clarity on the MSA question for lenders , the Colorado Division of Insurance has adopted a ban on marketing services agreements (MSA ) for title industry members , effective Aug. 15. The move, one of a host of new changes adopted in Reg. 8-1-3, is believed to make Colorado the first state to institute a ban on MSAs for the industry. When one is comparing residential mortgage lenders, whether in the usual statistics or at a conference, unfortunately the usual metric is volume. But if you think about it, wouldn't a lender rather do one loan and make three points rather than three loans and make one point on each? Of course if a lender is going to make a set amount on each loan, size matters. According to the Mortgage...(read more)

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