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Dodd-Frank Rules Are IT-Cost Prohibitive for Some Banks

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Comments (3)
I have advised many smaller banks to forget about consumer mortgage lending because it is cost prohibitive and contains far too much regulatory risk for a small bank to manage. At least the NCUA has seen fit to leave small credit unions alone which allows an affordable mortgage avenue for consumers. The bad news is that most of these smaller credit unions wind up assigning their loan servicing to poorly regulated loan servicers, but at least most credit unions will step in to help their members if the servicer really messes up.
Posted by PRLynn | Tuesday, January 15 2013 at 1:39PM ET
The Mortgage Bankers Association's Annual Performance Report shows that mortgage banking loan production profits in 2011 were 3x that of 2008, the net cost to originate has increased by $1,000 per loan since 2008, the percent of companies with pre-tax loan production profits increased from 59% in 2008 to 84% in 2011. so an increasing number of lenders are making better profits in mortgage lending despite the Dodd-Frank Act. I agree that the business is harder for smaller institutions, but they can still outsource tasks to protect their profit stream from mortgages, if they perceive to be too costly to invest in because their mortgage volume is low.
Posted by valdarno | Tuesday, January 15 2013 at 2:17PM ET
THE INCONVENIENT TRUTH: Hey the political right-wing extremists that likes to take legalized payoff bribes from the Wall Street behind closed doors! Here is few ideas for you and your clowns! One leave the Community Banks along and focus on too big to fail banks! Item two is new common sense closing of tax evasion loop holds as well as regulations with mandatory prison time for the crooks on WallStreet convicted of financial fraud.
Posted by AJPEREA | Tuesday, January 15 2013 at 5:20PM ET
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