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Feature of Volcker, and the U.S bankand, with the low interest rates, as ISGN who can offer services ing regulators' recent Notice of will continue to look for home for compliance adherence to Proposed Rulemaking [NPR] financing." lenders of all sizes." implementing Basel III, regardless And Booth had operational And Walzak saw broader of bank size may cause future concerns, "It is another layer credit implications for consumcapital positions pressure due to of regulation and may lead to ers, both positive and negative. the regulators," she said. "This micromanaging of banks," he "I think the impact will be a could lead to large acquisitions/ argued. "Compliance has become dimmer view of consumer lendmergers of community banks, a hot industry and lenders ing as a value-added proposition and the larger banks still face are scrambling to put together for large banks and, therefore, unresolved issues with the teams." less capital investments," she fighting of the profitable tradHe cited a recent conversation cautioned. "However for those ing desks. The Volcker Rule he had with a bank president smaller banks/community banks, Receive a free subscription to MReport! may cause borrowers even more who told him of a meeting at credit unions, and independents, limits for obtaining loans in the which he noted that compliit may be an opportunity to broader financial industry due ance and regulations dominated find capital to improve their to the complex requirements of and "only at the end, someone operations. It could certainly For more information on your free subscription, contactto put a round peg in a trying Jason Myers at 214.525.6700 brought up lending, almost as an be viewed as a sound investsquare hole for all bank sizes." afterthought." ment with the stringent credit Jason.Myers@TheFiveStar.com. And our fairy tale? As For the broader housing policies . . . if the economy Rumplestiltskin might sing: finance industry, Elkins said the continues to improve and borToday I brew, tomorrow I bake, Volcker Rule will further complirower confidence remains high. And then the banks I will make, cate matters. Consumers will be looking for Avoid the mistakes in my name, "The current economic clia financial resource that is not The Volcker Rule changes the game. mate, requirements on all banks associated with the larger banks and expensive to obtain, it could have a negative impact across all aspects of the housing finance industry." Elkins was concerned about the operational impact. "Financial institutions will have to integrate control/compliance checks into their core operations to assure adherence to the Volcker Rule," she said. "Large investment banks and smaller banks will be required to adhere to the Volcker Rule and manage their many complex systems with clients, vendors, etc. Small banks will also have to adhere and spend dollars they really do not have to meet requirements that may not apply to them due to no investment banking." That said, Elkins does see opportunities for her company: "Bottom line, all of this will create business for companies such news and strategies for the evolving mortgage market ThemRepoRT.com decembeR 2012 What's Next theMReport.com Originations | Servicing | Analytics | Secondary Market for Mortgage Will the stars align for emerging trends and strategies shaping the industry's evolution? 37 OriginatiOn World Peace: A new industry initiative may provide a peaceful solution for lenders seeking to harmonize and standardize technological operations. 28 | The M Report Servicing? 47 Servicing The ABCs of Appraisals: Lenders and appraisers are embracing new standards and strategies for valuations that are anything but elementary. On Your Side: Mortgage Banking News, Done Better 57 analyticS Dancing the Real Estate Two-Step: Though housing is more than a numbers game, intelligent interpretation of forward-thinking statistics can add up to gains. 71 SecOndary market Troubleshooting: Are the FHA's Risk Estimates Fatally Flawed? Recent findings revealing progress toward sustainable homeownership may represent unsafe statistics. Experts you trust. People you know. News you want. MReport brings today's housing finance headlines into focus. You know mortgage banking, and we know you, which is why you can count on MReport to provide insight into the latest industry innovations. Committed to giving originators, servicers, and all lending professionals access to smarter perspectives, MReport believes it's time to think differently about the mortgage marketplace. Because the American Dream is evolving . . . are you? Subscribe now! Call 800.856.8060 or connect with us online at TheMReport.com. or