Search
 

Rotert: GMP Provision in RESPA Proposal a Glimpse of The Future of Mortgage Lending

MADISON, Wis. - HUD's decision last week to withdraw its proposed RESPA reform rule was welcome news to mortgage industry participants. But at least one mortgage expert says the rule's provisions are an inkling of where the industry is going. Essentially, says CUNA Mutual Mortgage's Dan Rotert, svp/COO, the proposed...

By Staff Writer | Updated on March 30, 2004

MADISON, Wis. – HUD’s decision last week to withdraw its proposed RESPA reform rule was welcome news to mortgage industry participants. But at least one mortgage expert says the rule’s provisions are an inkling of where the industry is going. Essentially, says CUNA Mutual Mortgage’s Dan Rotert, svp/COO, the proposed rule would have created a new entity in the mortgage industry – a Guaranteed Mortgage Package – and then created the potential for the establishment of a cottage industry – “a bundler” who would create the GMP. “HUD never defined what should be in the bundle, and who the `bundler’ should be, so there was a lot of ambiguity,” says Rotert. Regardless if HUD reintroduces a revised RESPA reform rule and whether it has a provision for GMPs, Rotert opines that the mortgage industry is going to wind up operating in an environment of bundled services. In fact, he says, the industry is already moving in that direction. “In the last year and a half we’ve seen many consolidations on the technology and delivery side of companies that provide mortgage lending products. Providers have been scrambling to create organizations that have all the products, and mortgage lenders have been scrambling to find organizations that want to deliver them. All this has been happening even before HUD issued its rule. The objective is to create a more efficient delivery mechanism.” Rotert adds that HUD’s proposed RESPA rule “gave us a glimpse of what the future could hold for the mortgage industry from a regulatory standpoint. The reaction to the rule was if this is where HUD is going, then let’s get a jump on them. The rule created a catalyst for this to happen. The wheels have already been set in motion.”

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2024 ALM Global, LLC. All Rights Reserved.