For nearly 50 years, the National Association of Mortgage Brokers (NAMB) has been a leading voice on legislative matters that affect the mortgage industry and has served as an educational source for independent brokers. Linda McCoy, owner of Mortgage Team 1 Inc. in Alabama, took over this past fall as NAMB’s president, a one-year-term position.
The organization is focusing on a number of issues this year in an evolving and competitive marketplace. McCoy spoke with Scotsman Guide about NAMB’s priorities and why originators should support the association.
How worried are brokers about interest rates this year?
We are pretty sure that they are going up. There’s a lot of low- to moderate-income borrowers that already are stretching just to get in a house and we feel like that’s going hurt them. (Nominated Federal Housing Finance Agency director) Sandra Thompson’s main initiative is to help those borrowers. You got good programs to help, but then the rates are going to be higher. How is that going to affect these borrowers? There’s a lot of variables. Are we concerned? Yes, very much so.
What else is a concern for mortgage brokers that will be on your legislative plate?
Loan-level pricing adjustments (on second homes and high-balance loans that are planned for April 2022). We feel like there could be unintended consequences that could hurt the mortgage industry. We know that Sandra Thompson is planning on putting those same funds toward low- to moderate-income housing, which we love that. We just felt like it might have been a little excessive.
We want to be able to have an extensive training program so that when (new leaders) do get there, then they are going to be able to lead.
We’re still working on trigger leads. That’s one thing that we really are concerned about because it hurts the consumer. When we pull the credit (for a borrower), it triggers the credit bureaus to sell those leads that people are out shopping right now for a home. All we’re wanting to do is to have people be able to opt in if they want to receive offers from other companies, instead of having to opt out. We’re concerned about the fraudulent activity that comes from that.
Do you have an example of that?
I was sitting in my office at 9 o’clock in the morning, taking an application from a little lady, and I had all of her documents and everything else. I told her I’d get back with her that afternoon. When I called her back, she said, “Oh, somebody’s already called me from your office. Nice young gentleman. He’s already told me I’m preapproved.” And I told her, I’ve been the only one working on her loan today.
Can you explain the goal to remove lender-paid compensation from the 3% caps on points and fees under the qualified mortgage rule?
With low- to moderate-income housing, anything below $150,000, and in most places $250,000, brokers can’t do those loans because (compensation is capped) and it costs money out of our own pocket. You hate to tell somebody, “I can’t do your loan because it’s not profitable for me to do the loan.” A lot of times you just do them anyway.
Anything else on the legislative agenda?
The tax cut that eliminated the ability for us to be able to file expenses. Like Realtors, we have all the same advertising, travel and everything else that they do, but we don’t have any ability to expense them off on our taxes anymore. We feel like they need to fix that.
Why should brokers be members of the NAMB?
We fight for you in D.C. That’s one thing. Then they’ve got education. I joined NAMB because of the education. I feel like our education is the the best in the industry and we just keep adding to it every day.
Talk about the NAMB Future Leaders initiative.
We need new, young leaders coming in. I was lucky because (former president) Kimber White had me in on everything and I am training the person that’s following me — (president-elect) Ernest Jones. But we want to be able to have an extensive training program so that when (new leaders) do get there, then they are going to be able to lead.
What else is on your mind?
Since I’m the first woman in 25 years to be president of NAMB, I started what I call High Heels in High Places. It’s a women’s group to mentor women, to help them get to the top. It’s really taken off. ●
