From the: Fall 2022 Consumer Services Newsletter

Cindy Fazio

Hello!  Welcome fall and the needed rain.  But not all in one day!  I hope you and your families are healthy.  I hope your business remains strong.   The changes in our economy are proceeding as we thought they might:  interest rates are rising, the housing market is contracting, and homes for sale remain on the market longer.  Finally, the holidays are upon us and we now are looking to the new year.

According to the MBA Mortgage Finance Forecast for October 23, 2022, Q1 of 2023 might begin a downward trend of the 30 year fixed mortgage interest rate.  That analysis shows the downward trend going through the year. 

That being said, the low for next year, Q4, is 5.4, still a radically higher number than we are used to.  So, the belt tightening must continue.  But, cutting corners is never the answer. 

You can see what I mean by cutting corners by reviewing the common violations sections of our industry updates.  In the mortgage industry you have failure to timely report changes, inadequate or nonexistent MLO supervisory plans, unlicensed processing and underwriting supervisors, advertised trigger terms without disclosing additional terms, and failure to file accurate MCRs. See the trend?  Cutting corners is something you can control. 

In the money services businesses market, the extreme volatility in the crypto currency markets and loss of value in various business models continues.   The themes in that market might be  summed up as cutting corners to gain value quickly, and cutting corners to get a product to market quickly. 

At DFI, with the continued rise in the number of our licensees (even taking into account the renewal period with its annual loss of MLOs), we are cutting not corners, but processes that are not efficient and effective. 

Our new numbers for conducting on-site exams should settle sometime next year.  We want to be on site at your company for important information that is not easily translated to numbers on spreadsheets and for important conversations.  We will continue to monitor the number of examiners needed on onsite, we will continue to lead and work with other states on joint exams, and finally, we will continue to use efficient platforms and processes.   

Thank you for everything you do to provide safe and compliant financial services to Washington consumers!  Always feel free to contact me with any questions. 

Cindy Fazio