“The 3-percent cap is the issue we’re lobbying heaviest—it requires active lobbying, so if you have a presence in your various markets, get to your local representatives and push this one through.”
Trepeta also advised brokers to pay close attention to the RESPA/TILA Harmonization ruling, scheduled to go into effect in August of 2015, urging attendees to make sure their technology providers are on the same page and that all systems are working together by 2015. RESPA enforcement, in general, will be stepped up in the coming year, he added.
“Make sure your marketing agreements are rock solid and that what’s being done is commensurate with the amount of money coming back in,” he advised. “If the loan officer is paying for 50 percent of the ad, they’d better be in 50 percent of the ad. Warn your agents and teams because this issue runs the gamut and can apply to individual agents all the way up to big companies.”
Since the CFPB (Consumer Financial Protection Bureau) is charged with protecting consumers, Trepeta believes it will be more aggressive than previous regulators who did not have such a mandate. “The Bureau is very zealous and comprised of young lawyers full of vim and vigor who are ready to enforce this stuff.”
As Trepeta said, “The last two or three years was about Congress and new agencies writing laws and rules to address their concerns about housing and mortgage markets. The next few years will be about implementing, enforcing, and perhaps fine tuning those rules and also making sure nothing happens to stall a fairly steady recovery. NAR stands ready to work with its members, consumers, and state and local associations to ensure these rules protect consumers but also do not prevent them from accessing homeownership opportunities.”
Watch for coverage of the CEO Exchange panel “The Future of Affiliated Business Arrangements: How to Protect Mortgage, Title, Insurance Revenue… and More” coming soon at rismedia.com.
