The new norm of consumer power

by MPA03 Nov 2014
By David Lykken
Special to MPA

Much has been written about how the pendulum has swung too far in other direction when it comes to regulations in the mortgage industry. I would openly admit that the mortgage industry played a role in the financial crisis, and many of us made decisions we probably shouldn't have made. I would also agree that the industry has become too regulated and many people who should be able to get loans are now unable to get them.

 I want to optimistic about the future of the regulatory environment in the mortgage industry. I want to tell everyone that it's going to improve and that our chains will be loosened very soon. However, I'm not so sure that's going to happen. I think we may be looking at a new norm.

It's not all bad, though. Yes, I think we should continue to push for rights in our industry. We're all about getting more people into homes, and we shouldn't stop trying to make that happen. But, as far as the regulations on transparency and the disclosure go, I think compliance is good for all parties involved.

To an extent, we want consumers to feel empowered. We want people to feel confident in their decisions. We want them to be able to trust the industry. In the end, it would be better for us if we could self-monitor and build that trust without government involvement. But, since the environment is what it is, we can take comfort in the fact that we'll still be able to build the relationships we need to succeed going forward.

David Lykken is 40-year industry veteran who consults on virtually all aspects of mortgage banking. David hosts a successful weekly radio program called “Lykken On Lending” ( that is heard each Monday at noon (Central Standard Time) by thousands of mortgage professionals.


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