AI Product; Capital Markets; Wholesale and Correspondent News; Appraisals are Junk Fees?

Don Henley’s “Boys of Summer” was a hit 40 years ago. (Yes, 40 years.) There are plenty of beaches in Hawai’i, but here in Honolulu at the MBAH conference, it’s all business. MBA Chair Mark Jones reminded the audience that President Biden “declared war” on what he called “junk fees.” Sure enough, soon after the State of the Union Address, the CFPB announced that it would soon target what it called “junk fees” in mortgage closing costs. Unfortunately, what the CFPB calls “junk fees” include items required in the lending process, like flood certs, credit reports, appraisals. These help borrowers, investors, and taxpayers. At a recent hearing, House Financial Service Chair Congressman Patrick McHenry said to CFPB Director Chopra that his “so-called independent agency has become an arm of President Biden’s political operation.” To understand that accusation better, check out attorney Brian Levy’s most recent Mortgage Musing, where he describes how CFPB (Consumer Financial Politics Bureau?) appears to be putting politics over effective consumer protection policies with their junk fee, “name and shame” registry, and other policy initiatives. (Today’s podcast is found here after 8:30AM ET and this week’s is sponsored by Quontic whose mission is to help creditworthy borrowers obtain home loans and give them the “yes” they’ve been waiting for. Hear an interview with FundingShield’s Adam Chaudhary on new schemes and threats in the wire and title fraud space, and how both good players and bad players are attempting to use AI to their advantage.)