2014 is going to be a buffet for regulators. The Consumer Financial Protection Bureau (CFPB) has a mountain to climb and a limited amount of pitons in its proverbial inventory. Part of the reason for a lack of the regulatory pitons is that Congressional Members on both sides of the Aisle are nervous with respect to that which the CFPB hopes to accomplish.
The CFPB is sharpening their pencils with respect to the Mortgage Field Services Industry (Industry). As early as January, 2013, the Industry knew it was coming down the pike. Regulation X (See Below), as many like to call it, is 72 pages of a humdinger breakdown by the Federal Reserve. Here’s the catch: How many Contractors even have an idea that this Regulation exists let alone what it means?!
The Legacy of Dodd – Frank, the 800+ Page monstrosity issued in a knee jerk reaction by Congress, is going to probably do everything except that which it was originally intended to do. It will take more man hours EVERY YEAR to comply with the first third of the Regulations — 4.18 MILLION MORE MAN HOURS THAN IT TOOK TO BUILD THE PANAMA CANAL!
Dodd-Frank, passed by Congress in 2010, mandates that government regulators write over 400 new rules and requirements that will be imposed on the private sector. Since the law was signed by President Obama in July 2010, the Dodd-Frank Burden Tracker reveals: 1) regulators have written 224 of the 400 rules; 2) these 224 rules consume 7,365 pages; and 3) it will take private sector job-creators 24,180,856 hours every year to comply with these first 224 Dodd-Frank rules.
CFPB is looking to create a niche for itself. Make no mistake that the Mortgage Field Services Industry is creating a fertile environment. Whether or not the National Association of Mortgage Field Services intends to be the Poster Child for CFPB, the issues which are currently out there are going to become the Holy Grail very soon without being addressed.
While this Article is about CFPB and the complexity of Regulation, the reality is that NAMFS will become CFPBs Scope. The defense to any Contractor being nailed for lack of Regulatory Oversight will be the Origination of the Order. In this, NAMFS has a prime opportunity to alleviate itself of the bad publicity and implement Compliance for its Client.
Here is the rub: Contractor A goes out to perform an Occupancy Inspection for an NAMFS Member whom gets that Order from another NAMFS Member which Originates from a Financial Institution. The Financial Institution Originates the Work Order on Day 12 of the Early Intervention Requirement under 12 CFR 1024.39; the National Order Mill rolls out the Work Order on Day 16; the Regional Order Mill rolls out the Work Order on Day 31; and the Contractor receives it on Day 35.
Seemingly, this is a normal timeline; however, let’s go ahead and NOT CONSIDER IT ALREADY VIOLATES 12 CFR 1024.39 — IF YOU DO NOT UNDERSTAND THE CODE OF FEDERAL REGULATIONS …
YOU BETTER GET OUT OF THE INDUSTRY — AND DOES NOT TAKE INTO CONSIDERATION SNAFU.
You know, out of every Source I reached out to ONLY ONE HAD EVER EVEN HEARD OF THE CODE OF FEDERAL REGULATIONS! These weren’t Staffers; these were C Level Folks!
The Dodd-Frank Wall Street Reform and Consumer Protection Act is here to stay. The reality is that even if the Industry Chieftans want to begin to comply, without having their Boots on the Ground brought into the Loop for Strategy Sessions, the Industry will fail. Complicating matters even further is the fact that the vast majority of the Boots on the Ground Contractors are Darwinian malignancies of a CraigsList era gone awry.
To bring the Industry back from the Brink of Catastrophe, organizations like the National Association of Mortgage Field Services are going to have to face an uncomfortable reality. That reality is that if NAMFS is going to restore the veracity to its Seal, they along with the Contractors are going to have to begin to have a transparent level of introspection.
Part of NAMFS regaining credibility is twofold: First, NAMFS must begin to hold its Membership accountable — I don’t think anyone will argue with that. Second, NAMFS needs to assist the Boots on the Ground Contractors with a clear understanding of the New Regulatory Requirements coming into play.
Many folks always thought I had a personal ax to grind with NAMFS. The reality is that there are only a couple of folks there — ERIC MILLER IS NOT ONE OF THEM — whom call the proverbial shots at NAMFS. Miller is the photogenic portion of NAMFS that takes the Political Fallout just like when Americans are pissed off they attack the President. Foreclosurepedia is backing off of its rhetoric against Miller in hopes that he and NAMFS will not mistake kindness for weakness, but rather Step to the Plate and bring the Industry kicking and screaming
Foreclosurepedia is starting is ground breaking Series on Dodd – Frank and its Implication For the Contractors over on our Podcast Channel. The Series will be an unbiased, layman’s terms Podcast on Compliance and the penalties for not complying. If Contractors have learned anything in the Industry, they have learned that Regulatory Compliance rolls downhill.
The reality is that the Industry is larger than the singular malfeasance perpetrated upon it by Rogue Order Mills. I believe that with proper Training and Resources wherein Contractors may purchase Intelligence Reports on Order Mills, 2014 may become the turning point.