Mortgage Industry Updates: Monthly RoundUp – February 2021

Last month involved several regulatory compliance updates and hot topics in the Mortgage industry. We’ve rounded up some key updates and how they will affect you and your financial institution going forward.

Biden Builds Team To Get Aggressive on Regs

President Joe Biden is building a team of seasoned government professionals who can help him embark on an aggressive regulatory agenda as he takes office.

Biden will face a divided Senate. This will make moving legislation difficult, and will almost certainly force Biden to lean on executive actions and regulatory work — both to accomplish his own agenda and dismantle former President Trump’s.

Why Is This Important to Me and My Financial Institution?

The political landscape is an ever-changing one.  The Biden administration has promised more scrutiny of lenders to ensure consumers are protected, so the industry will need to be adept in applying policy changes that come out of Washington.

Regulatory compliance roundup - September 2020

Democrat Senate Win Could Cut Refinance Wave Short

Georgia held its runoff election on Tuesday, and Democrats appear to have won control of the Senate. Now, housing experts are shifting their 2021 forecasts, theorizing that the refinance wave could be cut short.

As of press time, the race was called for Democrat Raphael Warnock with a win likely for Democrat Jon Ossoff. Both men ran against incumbent Republican counterparts. This brings the Senate totals to 50 Senators on each side, with Vice President-elect Kamala Harris set to become the tie breaker.

The outcome is in contrast to the expected divided Congress that would have resulted from a Republican win on Tuesday. Now, one expert says this could be a game-changer for the refinance wave in 2021.

Why Is This Important to Me and My Financial Institution?

We all know at some point rates will rise and there are indicators that a slight bump upward is around the corner, which means the refinance bubble may soon pop.  While that is not the best news from a refinance perspective, the good news is that you will be hard pressed to find any industry expert with an opinion that rates won’t continue to stay in the historically low for the foreseeable future.  That means the hot purchase market should remain strong.  Lenders who focus on creating strong referral networks with realtors and builders galvanize themselves against the fickle refinance market and ensure themselves to be busy for a long time to come.

Consumer Financial Protection Bureau, Muzzled Under Trump, Prepares to Renew Tough Industry Oversight 

The Consumer Financial Protection Bureau, the watchdog created after the 2008 financial meltdown and largely muzzled in the Trump era, is poised to start barking again.

The agency will focus first on enforcing legal protections for distressed renters, student borrowers and others facing growing debt that its previous leadership has been lax about imposing during the pandemic.

But the CFPB — which President Biden has tapped 38-year-old Rohit Chopra to lead — is also likely to take an unprecedentedly tough line against industry giants it finds engaging in abusive practices, former agency officials advising the Biden team say.

Why Is This Important to Me and My Financial Institution?

All signs point to a more active and involved CFPB under the Biden administration.  As lenders evaluate their compliance training programs, consideration of the future regulatory landscape would be a prudent step to mitigate risk.  OnCourse Learning is always ready to assist clients in building a solid overall training solution!

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*For other news, please refer to Industry News through Mortgage HQ!

Mortgage HQ includes industry news and trends from mortgage experts available at your fingertips, as well as daily one-minute videos from Dale Vermillion, one of the foremost leaders in the mortgage industry. Topics include daily market updates, sales tips and motivational videos to keep LOs excelling in their business.

To see a demo that will give you access to valuable training topics like these and more, visit

Michael Rhodes - Product Manager at OnCourse Learning

About the Author

Michael Rhodes

Product Manager at OnCourse Learning

Michael Rhodes is the Product Manager for the mortgage segment at OnCourse Learning. Michael has worked in the financial services industry for 24 years and keeps up to date on mortgage industry hot topics. Michael received his Bachelor of Arts in Business Administration from Carroll University.

By |2021-03-01T13:10:07-06:00February 18th, 2021|Financial Services, Mortgage|0 Comments

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