Hello, LOs!
Today, Federal Reserve Chair Jerome Powell took to Capitol Hill to update lawmakers on monetary policy and the CARES Act. Meanwhile, more change is afoot at the central bank.
Powell said the recently emerged Omicron "variant of concern" and rising inflation could impact the Fed's plans to taper its monthly asset purchases.
"At this point, the economy is very strong, and inflationary pressures are high," Powell said during the Senate Banking Committee hearing. "It is therefore appropriate in my view to consider wrapping up the taper of our asset purchases, which we actually announced at our November meeting, perhaps a few months sooner."
Powell was just re-nominated to chair the central bank last week. There are still several seats to fill on the Federal Reserve Board, and a familiar name has been floated for the top bank regulator position.
The Wall Street Journal reported this morning that President Biden is considering Richard Cordray, formerly the director of the Consumer Financial Protection Bureau, to take Federal Reserve Board member Randal Quarles' position when he vacates it at the end of this year.
Cordray's nomination would be a triumph for progressives like Massachusetts Democratic Sen. Elizabeth Warren. During Cordray's time at the CFPB, the watchdog agency extracted more than $11 billion in settlements, and more than $5.5 billion in 2015 alone.
Besides the threat of enforcement actions, mortgage lenders have said that the heightened regulatory environment can lead to some awkward conversations while recruiting talent.
An LO might defend the compliance practices of one lender and question those of their new employer — not a great position to be in from the lender's standpoint. Lenders don't like to be forced to compete on compliance, said Mike Metz, operations manager at Scottsdale, Arizona-based lender V.I.P. Mortgage, Inc., during a recent mortgage show.
LOs, how do you handle differences in compliance practices? Do you share notes with your direct competitors? When do new recruits get a little flexibility, and when do you take a hard line? Do you think that will change, with the greater emphasis on regulation? Send your thoughts to gkromrei@housingwire.com.
Georgia Kromrei
Senior Mortgage Reporter, HousingWire
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