It is hard to trace what happens to the fines levied against company by various regulators seeking to make a name for themselves. But one agency is a little more transparent than others: the CIA! A leading correspondent rep in the West noted that it has quite an art collection. You can see it online - just don't try to visit it in person.

Here's some late-breaking news: regulations are impacting lending. One school of thought believes that the industry should not push back publicly against the government regarding regulation, and that we have to advocate for ourselves "behind the scenes" lest the consumer advocates will raise an outcry. Others ask, "What is the industry asking for? What special favor are we requesting? All we want is clarity on the regulations and not regulation by enforcement action." Either way, is there anyone who can reasonably argue that increased regulation of banks and other residential lenders has not cost them money, consumers money, and reduced profitability? One study I read stated that prior to the financial crisis financial companies accounted for 30% of U.S. corporate profits; they now account for 17%. Due to higher capital requirements larger banks, such as Citi, JPMorgan, and Goldman Sachs, have been shedding assets. But regulations don't have to always reduce profitability. For example, consider Section 342.

Section 342, part of the Dodd Frank legislation, continues to be a topic of conversation in some quarters of financial services. You can read the details here. CFPB's Office of Minority and Women Inclusion (OMWI) has spent the last several years ensuring that the Bureau conforms to inclusion policies mandated in 2010 by Dodd Frank. Now it says it is turning its attention to the entities regulated by the CFPB: "OMWI has begun work on plans related to the new standards, including creating processes and procedures for entities to voluntarily assess and report on their internal diversity and inclusion." So if your company is not taking extra steps to hire women- and minority-owned businesses, you should probably pay attention.

Honestly, I don't look at people in the mortgage banking world and think if they're men or women, straight or gay, a minority or not. To me those issues take a backseat to whether they are competent, can get the job done, and can help their client or the consumer. But it is a factor in our industry, and with our government. While in New York for the MBA Secondary Conference, I was discussing this issue with Rosalie Berg, the president of Strategic Vantage, a very well-regarded marketing and public relations agency that has served over 100 companies in the mortgage industry. We discussed how contracting with women-owned agencies like hers can not only help lenders demonstrate a commitment to the CFPB's policies, but can also pay sizeable dividends. "Everyone is always talking about how much it costs to meet CFPB requirements," Berg said. "But mortgage PR and marketing provide one area in which lenders can hire a woman-owned company, meet a Dodd-Frank requirement and simultaneously grow their business."

"Look at the high-growth companies in our industry," Berg added. "For every success story, you'll find that an investment was made in getting the company's name out there. A strategic marketing and public relations strategy created by an agency like ours that is staffed by industry veterans is a very effective way to grow a business, whether you're a lender, a service provider, a tech company, or a start-up. We have been serving the mortgage industry for over 14 years. We know the impact it can make."

Anita Padilla Fitzgerald of Colorado's MegaStar Financial thought, "I believe that Section 342, pertaining to the Office of Minority and Women Inclusion, might present opportunities for women and minorities in our industry. As both a woman and minority running my own businesses for the past 16 years, I find our industry and its leaders to be supportive of well run businesses, regardless of whether they are women or minority owned. Although women as CEOs and primary owners is still somewhat rare in our industry, women have proven that we have the talent to be top producers, have strong product knowledge, credit risk management, and leadership capabilities. We certainly need to be aware and hopefully you endorse diversity policies and procedures in your own organizations. I want my companies, however, to earn our business based on our service and quality, not because of section 342."

Ivy Zelman, at the helm of Zelman & Associates, contributed, "Taking the leap to start your own business as a female can be daunting especially since there is often a lot of risk involved and as many studies have shown, women tend to be more risk averse than men. However, I believe if you are disciplined, well organized, persistent as well as hardworking and confident in your knowledge and abilities, you can succeed at just about anything! The journey of forming and operating my own business has been far more challenging than expected. A few of the most important things I've learned are: 1) Expect surprises as I didn't consider the time and effort of back office issues or human resource challenges 2) Be open minded to change, ask people for constructive criticism; 3) Always take care of your employees - they are your most important asset that needs nurturing and attention. They are also a reflection of your business and will be more motivated to help the business succeed if they feel your appreciation; 4) Surround yourself with people you trust and who are not afraid to challenge you and accept challenges themselves; and 5) Don't accept mediocrity, don't keep the B employees even if it's easier 6) Over the course of your journey, expect to make sacrifices - there will be long days, days when you are in tears, days with laughter and days where you celebrate, but in the end if you remain committed it will all work out."

More on this important topic tomorrow!

For economic & bond market news, what turned heads yesterday were New Home Sales hitting 619,000 in April versus a 520,000 estimate. New home sales surged to an eight-year high as prices hit record highs indicating Q2 economy might be in better shape than expected. March's number were revised up to 531,000 as well. The data comes with a recent string of positive data - it may be hard to argue with the Fed next month if it says the U.S. economy is doing well enough to bump short-term rates up again. And the 2-year Treasury auction was met with very strong demand and the highest direct bid in over three years, leading some critics to suggest that the results indicate something bad is ahead for the world economy...

For thrills and chills this morning we've already had the MBA's application survey from last week (+2.3%, with application volume 24% above last year at this time!). Later this morning we'll have the March FHFA Housing Price Index at 8AM CDT looking at the Fannie & Freddie price world, and later still we have a $34 billion 5-year Treasury auction. Figuring out where rate sheets might be, we closed Tuesday with the 10-year at 1.86% and this morning it's at 1.87% with agency MBS prices a smidge worse.


Jobs and Announcements

In personnel & hiring news, Envoy Mortgage has hired veteran executives Joel Cambern and Joe Tako as regional vice presidents for the Northwest (WA, OR, ID, MT) and Southwest (SoCA, AZ, HI) retail lending regions, respectively. "Together, they bring over 50 years of experience to Envoy's retail mortgage operations, including many years with the nation's largest lenders and will be responsible for all aspects of retail production for their regions, including managing the existing teams and increasing the company's footprint and market share as part of Houston-based Envoy's strategic national growth plan (it is originating loans in 48 states and has more than 60 retail branches). "Envoy's advanced, paperless technology and sophisticated sales support attracts top origination talent to our company," said Keith Frachiseur, Envoy's EVP for Retail Production. Click here to find out why top branches and originators are gravitating towards Envoy or take a personal tour of our systems (held every Wednesday at 10AM CDT). Our one-hour tour will give you a live sneak peek into our proprietary LOS system, state-of-the-art marketing platform and allow you to meet key personnel at Envoy!"

And from Northern California comes news that Mason-McDuffie Mortgage Corporation has welcomed Hope Bourman as the new Irvine Branch Manager.  Bourman has more than 25 years of experience in the real estate financial industry, including positions with Fortune 500 companies. In addition to her professional career, Bourman is a best-selling author and professional motivational speaker. She has also received numerous awards, including Special Congressional Recognition from the US House of Representatives for her service to the real estate industry. Bourman is currently building her team of driven and savvy loan officers. For those interested in joining the Irvine Branch, email hbourman@mmcdcorp. com or call (949) 939-3355.

Home Point Financial Corporation announced Paul Wyner has joined as Managing Director - TPO Production. Mr. Wyner, with 26 years of experience, will lead the third party originations external sales team and focus on increasing production, strategic initiatives and implementing best practices. Home Point Financial is a nationwide mortgage banking business focused on multi-channel residential mortgage origination and servicing. Home Point Financial is a subsidiary of Home Point Capital LP, a financial services holding company founded in 2014 and owned by members of management and by investment funds managed by Stone Point Capital LLC.

And Finance of America Mortgage, one of the nation's largest nonbank lenders, announced a management change in their Wholesale division. LaNell Silverstein has been named Western Region RVP, Penny Smith has been named Eastern Region RVP and Terri Buckman has been named SVP, National Wholesale Manager. Congrats on the promotions!

Over at STRATMOR, Senior Partner Dr. Matt Lind indicates that many of STRATMOR's clients have asked questions regarding strategies and tactics for growing their retail production platform. This concern is not surprising since, despite low interest rates, most industry volume forecasts call for little growth if any in 2016 followed by lower volumes in 2017 and 2018. STRATMOR responded by launching a Loan Originator Hiring Insights Survey (one of the "Spotlight" series of surveys) that will remain open only until the end of this month. This survey will answer such questions as: What approaches to the recruitment, training, and compensation of new retail loan originator hires seem to work? What do not? What do lenders set as the minimum expectation for monthly originators for new retail hires? How much time are new retail hires given to reach that volume? What percentage of new hires fail to meet minimum expectations? How does this vary between new hires who are experienced retail originators versus newbies? Dr. Matt indicated that, like all Spotlight surveys, there is no upfront fee to take the survey. Rather, participating lenders can purchase survey results for only $250. To give you an idea of what Spotlight survey results look like, you can download, for free, any of 5 pilot survey results. You can participate in the Loan Originator Hiring Insights Survey.

Download your complimentary copy of XINNIX's white paper, "Profile of Today's New Originator." "Featured in Mortgage Banking Magazine, this white paper includes incredible insights from a demographic and psychographic survey of 800 XINNIX alums of the new Loan Officer program, ORIGINATOR. Download your copy today and leverage this powerful information to find your next rookie Loan Officers today!"

HECM webinar? "Many readers here are probably all too familiar with the ambiguous and antagonizing nature of TRID and its idiosyncrasies. Yet, there is hope out there for the fiercely independent who aren't willing to settle with TRID forever. Get RID of TRID, and move Forward With Reverse! TRID does not apply to reverse mortgage loans. Home Equity Conversion Mortgages (HECMs), also known as government- insured reverse mortgages are a great way to diversify your business for future growth. Click to view this informational webinar which will help you: understand how HECM reverse mortgages can benefit your business and your clients, discover just how easy it is to get started with reverse, and learn what to look for in the ideal reverse mortgage partner."