One more for the Worry List…but there’s a silver lining here, too.

Will lenders have somewhere to sell their loans?

The recent news that GNMA (Ginnie Mae) may be tightening its requirements on the purchase of loans is only one development in a stream of changes coming to our industry. And, although the news may be a worrisome on its face, there may be a silver lining. After all, as I promised, this is the “Worry List,” not the “Panic List!”

There’s no doubt that “business as usual” may be coming to an end for mortgage lenders, and this will cause quite a bit of upheaval. The first concern, of course, will be as to where to resell one’s loans. The easy answer is that many lenders will need to make adjustments to keep the pipeline alive and well. But where there is change, there is also opportunity. Yes, the standards will be higher. Yes, there will be a few pain points as processes change and compliance efforts are increased (at some cost, to be sure). However, lenders who may not have had the opportunity to sell their loans to entities such as Ginnie may now have that opportunity…if they’re willing and able to adapt.

I suppose the real worry to this item (as it is for so many of the regulatory and market changes coming) is uncertainty. Will GNMA change the standards again? Will CFPB or the other Powers That Be require further conditions for the sale of loans? How, if at all, will November’s election affect this client of upheaval? I don’t have an answer for any of those, and I’m wary of those who do claim to have solid answers. But I can assure my friends in the industry that flexibility and adaptability will be the norm for some time to come.

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