From uncertainty about mortgage rates and home sales to questions about the new leadership influencing the direction of the government-sponsored enterprises, the mortgage industry faces myriad questions and challenges in 2019. Here's a look at 12 executives who will be behind the waves being made this year.
Hugh Frater, Fannie Mae and David Brickman, Freddie Mac
What they do: Interim CEO of Fannie Mae; President of Freddie Mac
What he does: President and CEO of the Mortgage Bankers Association
What to watch for in 2019:"Bob" Broeksmit took over as president and CEO of the MBA in August, succeeding David Stevens. Can he keep the positive momentum of his predecessor going amid significant industry shifts? How will the trade group pivot its lobbying with a divided Congress? Will he ever join Twitter?
Why it matters:The MBA's political action committee raised a record $2.1 million during the 2016-2018 election cycle, including $1.2 million in 2018 alone. That may prove valuable as the industry is bracing for considerable consolidation amid tight margins and low volume, which may pose challenges for the MBA's membership, fundraising and lobbying efforts.
Why it matters: Origination volume is expected to continue facing difficulties. Seeing how Flagstar will navigate the market and handle its mortgage business will be interesting. Flagstar's been issuing their own RMBS deals and will have more freedom in 2019.
Why it matters: The Lennar Financial Services umbrella provides everything for the homebuying process including title, mortgage and closing services. One-stop shops are becoming the trend as more mortgage companies face problems making profit.
What to watch for in 2019: Lantz plays a critical role in directing strategy and execution. How will she help traverse the mortgage part of the business through the dark housing outlook for 2019?
Why it matters: Zillow Group transformed itself into a digital brand conglomerate of renting, buying, selling, financing, home improvement and data.
Why it matters: The GSEs' 3% down payment loan programs have created new competition for first-time homebuyers, particularly given the high cost of FHA mortgage insurance. The multifamily risk-sharing program supports affordable housing development and allows state housing finance agencies to underwrite multifamily loans. HUD shares the effort of increasing the affordable housing supply, as well as aiding homelessness, enforcing fair housing laws, and disaster response.
Federal Housing Commissioner and Assistant Secretary, U.S. Department of Housing and Urban Development Brian Montgomery, speaks during a hearing of the Senate Banking, Housing, and Urban Affairs Committee examining regulatory response to the current economic crisis, on Capitol Hill in Washington DC, Thursday, October 23, 2008. Photographer: Chris Kleponis/ Bloomberg News
CHRIS KLEPONIS/BLOOMBERG NEWS
Michael Nierenberg, New Residential
What he does: Board Chairman and CEO of New Residential
Why it matters: Nonbank mortgage servicers must gear up to meet new secondary market requirements and make some tough decisions about whether to buy, sell or hold MSRs as they head into 2019.
Sam Waxman Cancer Research Foundations 19th Annual Collaborating for a Cure Gala in Los Angeles.. .Pictured: Michael Nierenberg. Ref: SPL 111116 .Picture by: Matt Brandt / Splash News . . Splash News and Pictures .Los Angeles .New York .London . (Newscom TagID: spnphotosseven773930.jpg) [Photo via Newscom]
Matt Brandt / Splash News/Newsco
Eric Schuppenhauer, Citizens Bank
What he does: President of Home Mortgage, Citizens Bank
Why it matters: With the nonbank market share of mortgages rising, Citizens appears poised to make a contrarian play among bank mortgage lenders and expand its loan offerings.
What he does: Executive Vice President at Wells Fargo Funding
What to watch for in 2019: Stoddard oversees Wells Fargo's massive correspondent mortgage channel, the largest aggregator of closed loans originated primarily by independent mortgage banks. Wells Fargo's recent move to start acquiring electronic notes from its correspondents could be a watershed moment for the electronic mortgage movement.
Why it matters: Small and midsize lenders often cite investor acceptance as one of the biggest impediments to e-mortgage adoption. With the largest correspondent aggregator — not to mention both GSEs — all buying e-notes, that obstacle is becoming increasingly less severe.
The Federal Housing Administration reported a 96 basis point increase in its capital ratio for fiscal year 2023, and lenders want more changes to the program.
In its semiannual supervision and regulation report, the Federal Reserve flagged climbing loan delinquencies and a rising number of large bank citations for governance and controls.
