recently sat down with Mike Frotten, managing director of Home Point Financial, an Ann Arbor, MI based progressive financial services company that ramped up earlier this year by acquiring Maverick Funding
MPA: Tell us a little about Home Point Financial
We’re a new company. We officially started April 1 of this year. Maverick gave us a great opportunity to get a head start in the marketplace. We’re backed by Stone Point Capital. The leadership team is a group of seasoned mortgage professionals
, and we’ve all come together to become to be a full-service financial services provider, as opposed to just a mortgage banker. We have a servicing platform, and we’ll take advantage of all the capital market opportunities that will create. We’re approved with Fannie, Freddie and Ginnie. We’re mostly forward, but we have a great reverse group, very experienced and seasoned professionals.
MPA: So TRID is here. Do you think the industry is prepared?
There’s nothing we can do now but to figure out how to implement the changes that are coming. I think we’re as prepared as anyone can expect to be. It’s a huge change, and any time you make a change of this scope and magnitude, you lose your whole experience curve. So adapting to that will take some time. October 3 for us was an important date to meet – but more important is how it will look when people start closing with the new rules.
We feel pretty confident. We’ve had some really smart people working on this for months. So we feel pretty confident that we’re going to be okay. And it isn’t just the systems and processes we’ve put in place; there’s a lot of stakeholders in that process as well – realtors, loan officers, all the way down. So we’re not the only ones who need to be prepared; other stakeholders need to be prepared too. Until they have a few under their belt and change processes, it’s just going to take time.
MPA: Do you see any opportunities on the horizon in the mortgage space?
I think it’s the same opportunities there’s always been. Our product is a commodity. There isn’t any product I have that someone else doesn’t offer. But I’ve felt passionate about this for a long time. … Consumers hate the process. They don’t care about all the 15 different disclosures; they want to know, ‘What’s it going to cost me to get my loan? Please make sure the figures don’t change, and don’t tell me the day before closing how much I’m supposed to bring to the closing table.’ For us, it came through loud and clear that consumers are screaming for simplicity and clarity. I’ve been evangelizing that for years, and I think whoever figures that out is going to do the best job for consumers. It’s not about disclosure; it’s about who brings the most simplicity and clarity to a very complex transaction.