Break from Bashing
Facing so much criticism for problems in the servicing industry, mortgage bankers may not mind a sympathetic word, or two, these days.
By and large, the Mortgage Bankers Association summit in Washington Thursday continued the barrage as regulators one by one came to the lectern with blunt words. FDIC Chairman Sheila Bair decried the industry's "inertia," "chaos" and "fundamental flaws." Federal Housing Administration chief David Stevens spoke of "an enormous trust deficit." And New York State Banking Superintendent Richard Nieman described a culture of "shortcuts" in the industry, advocating that federal regulators take a "SWAT team"-style approach with servicers.
But attendees may have done a double take when, amid all the tough love, they heard actual praise. Cindy Gertz, who heads the Treasury Department's Office of Homeownership Preservation, was decidedly upbeat about servicer performance, perhaps more so than many of the servicers themselves. When faced with enormous challenges, Gertz said, the industry had "responded boldly."
"The decline of service levels was, I think, completely understandable in light of the tremendous volume," she said. "We are seeing enhanced document retention systems, the development of more internal quality assurance programs. As Chairman Bair noted, servicers started behind the curve. But I think tremendous progress has been made."
Democratic Lineup
More than a month after subcommittee chairmen were named for the House Financial Services Committee in the new Congress, the Democratic minority finally announced its ranking members for the six panels.
Rep. Maxine Waters, D-Calif., was named as the ranking member of the subcommittee on capital markets and government sponsored enterprises. Rep. Carolyn Maloney, D-N.Y., will be the ranking member of the subcommittee on financial institutions and consumer credit.
Senior posts were also given to Reps. Luis Gutierrez of Illinois (insurance, housing and community opportunity), Michael Capuano of Massachusetts (oversight and investigations) and William Lacy Clay of Missouri (domestic monetary policy and technology). Jackie Speier, D-Calif., has left the full committee and John Carney, D-Del., has become a member.
New Leader at CSBS
The Conference of State Bank Supervisors last week named Louisiana state Commissioner John Ducrest its chairman.
The appointment was effective Jan. 14. Ducrest succeeded Tom Gronstal, who stepped down as banking superintendent in Iowa with the election of a new governor there. Ducrest, who has run Louisiana's Office of Financial Institutions since June 2004, will complete Gronstal's term and then begin a one-year term as CSBS chairman in May.
Ducrest, the first Louisiana commissioner to run the regulator group since 1934, had been its chairman-elect since May. He has also been vice chairman and chairman of the group's legislative committee.
The CSBS also promoted Margaret Liu to senior vice president and deputy general counsel from vice president and assistant general counsel.
Liu started at the CSBS in June 2009. Before joining it she was a consultant on financial services policy. She spent 10 years at Fannie Mae, including a stint as vice president in the single-family mortgage business.
OCC Hires
The Office of the Comptroller of the Currency announced two hirings. Joyce Cofield, who has been with the agency since 2001, was named executive director of its Office of Minority and Women Inclusion. Also, Martin Pfinsgraff, the co-founder of a worldwide risk management company, was named as the OCC's deputy comptroller for credit and market risk.
Cofield's position was created by the Dodd-Frank Act to oversee matters related to diversity at the agency. She was previously the OCC's director of workplace fairness and equal opportunity and director of recruitment, diversity and retention.
Before joining the OCC, Pfinsgraff was a principal at iJet International. He co-founded iJet in 2000 and was its chief financial and operating officer. He previously worked for Prudential Securities Capital Markets and Prudential Insurance Co.
Pfinsgraff succeeded Kathy Dick, who left the agency last year to become a special adviser at Promontory Financial Group.
