Lenders everywhere are facing a basic dilemma: Diminished volumes and leaving profit margins alone, or reducing profit margins and trying to maintain volume. Or, gulp, both. Everyone talks about efficiency and technology, but many lenders are very concerned about the next 4 months, especially if anything new takes 6 months to roll out.
Government Actions Affecting Lenders
We start with another good news, bad news scenario. The Federal Reserve Board and the State of Colorado Division of Banking have granted approval for Peoples, Inc. and National Bank Holdings Corporation (NBHC) to complete their merger.
But in language that every mortgage company should read since it impacts every rate sheet in the United States, Peoples Bank has entered into a UDAAP Consent Order with the Federal Reserve, which provides complete and final resolution to a long-standing consumer finance issue involving Peoples Bank’s national mortgage business. (NBHC is not a party to this consent order.)