Lykken on Lending

[David] Mr. Kittle, let’s get on to some of the things that you were in Washington, DC. And we talked a little bit about that last week. One of the questions that I had that someone listed the podcast said, I wish you had asked Dave this, and I’m going to finally get a chance to ask it today. But when you were meeting there, what is the tone in DC David? Do you feel that they’re listening? or is it a political listen where, you know what do you represent? what’s your constituency? Do they really listen in an open heart and open mind? Your thoughts. That was a question from one of our listeners.

[David Kittle] I think we need to remember and it’s not hard to forget that when you go see Fannie and Freddie, which we did, that they’re owned by the government. So they’re 100% political these days where they used to be independent. Every agency we saw, which is CFPB, FHFA, HUD, Ginnie Mae, Fannie, Freddie they’re all upbeat but it’s more regulation from the CFPB. Not taking yet a position from HUD or FHFA on whether or not loan officers and the commission issue and the NAR settlement out there. There’s no position on that whatsoever and when you go to Fannie and Freddie, they both say that their repurchase requests are down. Clearly

[David] they’re not Absolutely Sit there and saving and they’re up they’re way, they say that while you’re there, and then the next day that the headline came out that they’re substantially up. Is there something about inside the beltway where you there is a disconnect with reality of what’s being reported and remember there’s either the reporters are reporting wrong or their perception is not there.

[David Kittle]There’s two avenues of advocacy up there. Let’s say the ones what the MBA does mostly when they take you up there, they go see congressmen and senators and you’re represented by the pack and that’s fine. We don’t have a pack and we don’t have lobbyists. Our lobbyists are members. When they go up there and they have their advocacy day, they take their constituents with them. And that’s very powerful. Probably more i, yeah, look, I ran the pack for 2 years. I get it. That’s what you do. However, there’s a difference to go see Congress and you’re the pack is backing it up with a check on both sides of the aisle than sitting and talking directly. With the regulators on real issues, and we sat there without naming names on a repurchase request that was going to have a call on it the next week and one thing was said about how the call was going to go and they listen with an open mind on repurchasing this particular loan from a TMC member. Loans, 3 years old, paying on time and the call went a 180 out from what they said, and they just completely denied it on a ridiculous point and because they can. And that’s what you fight. So I will say one more thing. Alright, one more thing on this. There is a need for it. I have no dog in this fight other than, it’s a friend of mine and yours and they have it and we have it inside the collaborative, rep and warranty. Repurchase insurance is available. Yes. Yeah, you should have it. And Arthur Prieston does it. If there was insurance on this loan, the loss would be. Substantially less than what it’s going to be. If we can’t get the repurchase turned around.

[David] It’s absolutely spot on. You opened up the door for Alice because you talked about regulate the regulators.

---

David G. Kittle, CMB  is a highly respected leader in the mortgage industry, with over 45 years of experience. He is the Co-Founder and Chairman of The Mortgage Collaborative (TMC), a mortgage lending cooperative providing members with access to resources and tools to improve their business operations.

Kittle began his mortgage banking career with American Fletcher Mortgage Company as a top-producing loan officer in 1978 moving to the management side in 1986 with Southmark Mortgage. He opened Associates Mortgage Group, the first of his three lending companies in 1994.

Kittle served as MORPAC Chairman for MBA, from 2004-2006. He is past President of both the Louisville and Kentucky Mortgage Bankers Associations, as well as leading the industry through its most tumultuous period as Chairman of the Mortgage Bankers Association, Washington DC in 2009. Kittle has testified before congress 14 times.

Kittle has been a driving force behind the growth and success of TMC, working to bring together mortgage lenders from across the country to share best practices and collaborate on key industry issues. Kittle has also been a vocal advocate for innovation and technology adoption in the mortgage industry, urging lenders to embrace new tools and strategies to improve their operations and better serve their customers.

Kittle is a frequent speaker at industry events and conferences, sharing his expertise on a variety of topics related to mortgage lending.

He resides in Louisville, Kentucky, he has four children and two grandchildren.