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» VISIT US ONLINE @ DSNEWS.COM 63 believe that will change. However, given even the slightest bit of consistency, most good businesses will find ways to win more business. Unless something of the magnitude of TRID pops up in 2016, I think it will be a good year for the industry on the whole. ere's no doubt that this will be a year in which the purchase transaction rules the residential mortgage market. We don't think it will be a banner year for refinance, but it won't simply go away, either. We're also keeping our eye on the possibility of a surge in HELOC transactions. We believe that the overall economy and the market conditions facing the housing and mortgage industry, in particular, will be similar to those of 2015—perhaps even more stable. If there is a slight increase to the prime interest rate, there may be some very short term concern. But industry participants will quickly realize that rates remain historically low. If anything, a slight increase might encourage a moderate spike in refinance or purchase volume, as those who have been sitting on the fence begin to move before the rate increases further. e real wild card for 2016 will be compliance. What new regulations or laws could insert uncertainty into the industry after TRID? Even if something similar arises, however, we're confident that those businesses which have come to accept fluctuation and change as "the new normal" will continue to thrive. Flexibility and adaptation will rule the day, and prove to be competitive advantages should the compliance framework change again. COVER FEATURE ASSET DISPOSITION KEITH MURRY President & CEO, VRM Mortgage Services I think, as everyone surmises, the coming year will see a continuation of consolidation as we continue to return to pre-crisis inventory levels in the REO space. Firms like VRM Mortgage Services, PCV Murcor and Hightide Settlement Services will continue to evolve to meet the increase in compliance requirements, while striving to maintain service levels and exceed client expectations. It is certainly a balancing act that we will need to continue to refine. We've come a long way as an industry. e challenges the industry endured as a result of the crisis made us stronger. However, to continue servicing our clients and homebuyers, we have to evolve and invest in our craft. Going forward, I believe ongoing innovation and new ways to address business challenges is what we will focus on. As an industry, we've have new challenges that require us to approach every situation as an opportunity to grow. I'm excited and look forward to the prospect of discovering new solutions and new ways of doing business. It takes me back to my days as a one man appraisal shop— the excitement of getting up every day trying to outperform and out hustle the next guy. Most importantly, we welcome the opportunity and the satisfaction of doing the job better each day than we did the day before. COVER FEATURE COMPLIANCE JANET EAKES Business Owner - Financial Services & Mortgage, Sapiens e ever-changing mortgage market, having managed unprecedented regulatory burden and costs, now faces decreased production levels with rising rates and slowing refinance activity. is could mean layoffs and reduced resource availability in 2016, just as we begin to feel the real effects of the Truth in Lending Act (TILA), Real Estate Settlement Procedures Act (RESPA) Integrated Disclosures (TRID) rule on actual loan closings, begin to assimilate the final Home Mortgage Disclosure Act (HMDA) rule and face the first increase in interest rates in nearly a decade. e upcoming year will continue to test our ability to proficiently manage operations while incorporating new products and innovations to meet market demands. Mortgage banking has always been complex in nature; however our willingness to harness the advances of technology has lagged behind other industries. Reduced resources will necessitate innovative change in the back office to effectively support continued federal and state regulatory compliance and examination needs, in addition to facing more work-intensive purchase production and ongoing servicing default management challenges. e industry is ready to move from an all- consuming focus on compliance implementation to maintenance, yet operational and compliance risk due to system and data inconsistencies remains a real concern. Transitioning from a defensive risk and compliance position to an offensive focus requires that mortgage stakeholders embrace new developments in change management solutions to ensure speed-to-market, cost controls, as well as ongoing compliance precision and certainty. Investor and regulator guidance will continue as the Government Service Enterprises (GSEs) and Federal Housing Administration (FHA) roll out guideline changes, the Consumer Financial Protection Bureau (CFPB) generates bulletins and agencies such as the Office of the Comptroller of the Currency (OCC) release their TRID requirements. Implementing ongoing industry, regulatory, and competitive requirements with minimal disruption to drive growth and support compliance requires systems that enable business- led change coupled with bullet-proof integrity. Regardless of business model, all mortgage industry stakeholders need this type of approach to technology in order to position for growth while controlling costs and ensuring compliance. Although the overall feeling amongst my colleagues is that the mortgage industry is finally touching the other side of the financial crisis and approaching recovery, the New Year will continue to present challenges to lenders and servicers alike. With lagging production, investing in much needed enterprise-wide system transformation can complement sales and origination. COVER FEATURE EXPERT OPINION The challenges the industry endured as a result of the crisis made us stronger. However, to continue servicing our clients and homebuyers, we have to evolve and invest in our craft. –KEITH MURRY COVER STORY SUCCESS FORMUL A INDUSTRY INSIGHT

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