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MNOTES Why All Lenders Are Not Created Equal What happens when non-bank lenders start gunning to seize more market share from big lenders? G ood or bad, big lenders have propped up the U.S. economic engine. This month's cover story, "[Not] All Originators Are Created Equal," places an importance on the mortgage giant's naturally possessing more market share. At one point, according to American Enterprise Institute's (AEI) International Center on Housing Risk, the top U.S. banks controlled 85 percent of the origination market. Sheer size has enabled big lenders to make banner decisions and helps companies pivot quickly when launching programs that are beyond the means of some of the smaller depository institutions. But size doesn't always matter. A profitable big lender used to translate into strong consumer (and investor) con - fidence, employment gains, and economic growth. But since the market shifted and regulation took hold post-crisis, up-and- comer non-banks have crept their way into controlling the majority of the nation's mortgage business. And as Phil Britt's feature will tell you, there are success stories and special programs that lenders of various sizes can point to—and perhaps lessons that both the David's and Goliath's can glean when mortgage activity starts to fall. Navigating a path towards success con - tinues with Xhevrije West's "Murky TRID Waters, Everywhere." In her feature, title and escrow companies learn how they can swim upstream in a TRID-rich environ - ment. Though the Consumer Financial Protection Bureau's (CFPB) regulatory changes have created a challenge to a suc- cessful closing, those who are operating "above board" and who innovate through technology, process flow flexibility, and creativity will enhance the millennial customer experience—a market that's ripe for homeownership. The CFPB stays in the spotlight with "On Bated Breath," as attorney Jeffrey Puthoff examines PHH Corporation's ap - peal on a ruling that clarifies the CFPB's reach in interpreting statutes and dol- ing out enforcement actions. Calling the CFPB's decision "arbitrary and capricious," could this appeal challenge the very structure of the bureau and its director? If PHH's constitutional challenge succeeds, it could cast doubt on the agency and any previous enforcement actions. We wrap up May's issue with logic. Smart logic in loan origination systems (LOS), to be exact, and how administer - ing smarter logic can be the difference between making the right and necessary choice. Many on the origination side of the house agree: The LOS is the most impor - tant decision that a company will make. The smarter the system, the more effective the company can become. In "The ROI of Rules-Based Decision Engines," Lionel Urban covers how far rules-based systems have come, and how they have made predecessors obsolete. In keeping with smart logic, Urban paid tribute to Leonard Nimoy in a quote many of you have heard, "It's only logical, Captain." Whether you're a Spock follower, or a student of progress, we've found that logic, or simple judgments, like innovating with special programs to stay relevant, figuring out how to navigate in regulatory- rich environment to stay profitable and providing superior closings, to challenging a government agency even if it means up - setting the institution, triggers actions that lead to the beginning of wisdom. Live long, and prosper, Rachel Williams Editor 2 | TH E M R EP O RT EDITOR-IN-CHIEF Rachel Williams ONLINE EDITOR Xhevrije West ONLINE CONTRIBUTORS Brian Honea Scott Morgan Ryan Schuette Aly Yale COPY EDITORS Krista Franks Brock Jacqueline Gilbert Aly Yale CONTRIBUTORS Phil Britt Jeffrey Puthoff Lionel Urban CREATIVE DIRECTOR Jason Stone ART DIRECTOR Jonathon Won DESIGN DIRECTOR Sean Walker ADVERTISING Suzanne Andresen (207.443.3314) Robyn Clayton (214.525.6716) Kevin McCrea (214.525.6756) Jason Myers (214.525.6760) Lindsay Wolf (214.525.6713) CORPORATE OFFICERS CHAIRMAN & CHIEF CREATIVE OFFICER Mark Hulme PRESIDENT & CHIEF EXECUTIVE OFFICER Ed Delgado CHIEF FINANCIAL OFFICER John Harrison DIRECTOR OF HR/ACCOUNTING Ernest Gillespie ART DIRECTION Jason Stone Sean Walker Jonathon Won No part of this publication may be reproduced without written permission from the publisher. ©2016 REO Publishing LLC All Rights Reserved This publication is intended to provide accurate, authoritative, and detailed information in regard to the subject matter covered. All written materials are disseminated with the understanding that the publisher is not engaged in rendering legal advice or other professional services. Under no circumstance should the information contained herein be relied upon as legal advice as it is designed to be a source of information only. MReport strongly encourages the use of qualified attorneys or other qualified experts with regard to the subject matter covered. MReport does not guarantee the accuracy of the information and is not liable for any damages, losses, or other detriment that may result from the use of these materials. © 2011 First American Financial Corporation and/or its affiliates. All rights reserved. YOUR business is OUR business! First American Mortgage Services is laser focused on mitigating YOUR cost, risk and exposure by aligning our advanced solutions with YOUR strategic objectives and compliance needs. We are the New First American, over 120 years young, strong and financially secure. Insight | Innovation | Integrity First American Title Insurance Company and First American Mortgage Services make no express or implied warranty respecting the information presented and assume no responsibility for errors or omissions. FIRST AMERICAN and FIRST AMERICAN TITLE are trademarks owned by First American Financial Corporation. 2 | Th e M Rep o RT Publisher Jon Ball contributing editor Abby Gregory online editor theMrePort.coM Ryan Schuette coPy editors Alison Rich emily White Youree heather hill contributors phil Britt Bob Calandra eric Fox Jack Konyk Mark Lieberman creative director Jason Stone art director Jonathan Won associate art directors Bruce Sons Chanyanont Loha-Unchit design director Sean Walker advertising Dina Duncan (214.525.6740) Jason Myers (214.525.6760) Andi Zimmerman (214.525.6724) technology Toby Tull Brandon Shangraw social Media Leon McKenzie Ani Vera circulation/corresPondence Celina Avila corPorate officers chairMan & chief creative officer chief executive officer Mark hulme edward R. Delgado business develoPMent Andi Zimmerman chief financial officer John harrison director of huMan resources ernest Gillespie director of oPerations Toby Tull account executives senior account executive Donna Lott (214.525.6792) sPonsorshiPs Jason Myers (214.525.6760) account executives Renee Charles (214.525.6742) Thomas Griffin (214.525.6754) Kristin Larson (214.525.6713) Ryan McLemore (214.525.6706) Marketing Travis Bogdon Matt hulme Production Kyle Curtis Miguel Martinez Christian McCrossan concierge Celina Avila art direction Jason Stone Sean Walker Jonathan Won No part of this publication may be reproduced without written permission from the publisher. ©2011 Reo publishing LLC All Rights Reserved This publication is intended to provide accurate, authoritative, and detailed information in regard to the subject matter covered. All written materials are disseminated with the understanding that the publisher is not engaged in rendering legal advice or other professional services. Under no circumstance should the information contained herein be relied upon as legal advice as it is designed to be a source of information only. MReport strongly encourages the use of qualified attorneys or other qualified experts with regard to the subject matter covered. MReport does not guarantee the accuracy of the information and is not liable for any damages, losses, or other detriment that may result from the use of these materials. FORDEFAULTSERVICINGPROFESSIONALS THEFIVESTARINSTITUTE Follow us.