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Capital Markets Today

Feb 5, 2014

Tom Showalter, Chief Analytics Officer of Digital Risk, joins the broadcast to discuss QM and origination defect requirements and potential impact. Showalter, hints that the bifurcation of the mortgage origination business is eminent. Showalter reflected that a mortgage company’s business is understanding consumers needs and wants then developing credit, marketing and secondary policy that meets market expectations. Because of the compliance risk and costs, manufacturing the loan or the process of originating will most likely fall to a few large companies that have the ability and balance sheet to invest millions into technology, compliance and process. Showalter goes onto to discuss the GSEs, short and long term outlook, impact of origination defects to price and performance.