TheMReport — News and strategies for the evolving mortgage marketplace.
Issue link: http://digital.themreport.com/i/113472
ORIGINATION M // Given your experience as a director for Colorado Community Bank and its holding entity, Washington Investment Company, how are smaller financial institutions faring versus their larger competitors while adapting to lendingrelated legislation, and how are companies meeting the challenges? Armstrong // Small and midsized bankers find themselves in a withering world of regulation and compliance. They face the same regulatory challenges as a top 10 lender but without the benefit of scale. Combining best-of-breed and end-to-end M // As CEO of Blueberry, what leadership initiatives have you implemented to help your team remain future-focused while operating in an unpredictable marketplace? Armstrong // I've always been a big believer that a shared sense of purpose and vivid description of the future is the best way to lead a company. We've endeavored to do just that with the corporate philosophy we use as we build a team with a lot of mortgage DNA. Our purpose at Blueberry has been to help our customers become wildly successful. I know that if our customers are "wildly successful" and we're a part of that success, we'll prosper as an organization. It's what drives each day at Blueberry. To that end, we've been very deliberate in our growth up to this point. We didn't want to get ahead of ourselves by signing as many clients as possible, then fall down on execution and customer service. We are scaling up accordingly and staying true to our long-term plan. That goes a long way, both internally and externally. The M Report | 55 se c on da r y m a r k e t Armstrong // The obvious answer is compliance, and for good reason. With rapidly evolving regulatory and investor landscapes, actionable data and reporting is essential for any system core and associated third parties. Examples include HMDA and Fair Lending. Accurate and actionable data is indispensable. Meanwhile, capital requirements are new. The industry has been deleveraged, and I expect this to be the case for the foreseeable future. And hopefully, the market sees more predictability now that the election is over. Armstrong // Today, more than ever, it's critical that lenders have the compliance, the character, and the capital to not just survive, but to excel and stand above your peers. Compliance is overwhelming and complicated with new obligations like the CFPB audit and consumer complaint management requirements. Of course, character has always been the hallmark of longterm success in any industry. Ours will require it more than ever as industry leaders position the lending space for long-term success amidst the economic recovery and the compliance challenges that come with it. a na ly t ic s M // Among the wide array of current policy issues plaguing the housing finance industry, what key concerns are at the forefront for your company and its clients? M // What development and growth strategies are driving success for mortgage banking executives? s e r v ic i ng Armstrong // If not already, software-as-a-service will be a staple requirement for any successful loan origination system or third-party provider in conjunction with cloud computing. As compliance requirements mount, tech vendors are starting to integrate more tightly with each other and communicate more closely, ultimately leading to better compliance and data validation. It should be noted that great technology still depends on great people to implement and utilize the technology effectively. within a single workflow creates economies of scale and levels the playing field for them. These bankers are now aggressively pursuing these types of systems to meet their demands and ensure long-term success. Or ig i nat ion M // What dominant technology trends are you observing now among lenders, and what new tools are emerging?