Raj Date starts new mortgage company for non-QMs

Don't know if others have seen this:

http://realestatemarbles.com/campga/2013...non-qualifiers/

Are you as irked as I am?

a little bit of self-serving, get rich at our expense going on here.... oversees writing of regs to scare banks out of non-QM loans and then leaves and opens a mtg co dedicated to the same. What honorable folks we have in DC.

Holy cow.

no appearance of a conflict here....

Well, isn't that just fine and dandy.

I can't say I'm surprised. For years, inside the beltway people, elected or staff positions, have been taking jobs in private industry after leaving DC to work on the same issues that they worked on while in DC. At least for elected officials, I believe there is a waiting period before they are permitted to lobby former colleagues.

Isn't he the one who said that serving with the CFPB was every bit as important to our nation as serving in the military? ABA compliance conference in Orlando.

Yes walden, but he must provide for his family!

This is wrong on so many levels. I wonder if they will be examined by the CFPB....

I don't understand the controversy.

As a Policy maker at CFPB there were regs made to hinder banks from making non QM loans. He is now setting up a co that will benefit from the regs that were put in place during his stay at the CFPB which cut down on competition from banks in the nonQM market.

I don't really have a problem with it. Congress created QM loans.

I find it less problematic than high level regulators starting consulting firms that are then pushed at large banks when they have problems.

It doesn't pass my smell test. He helps create the rules and then goes out in the vale of an expert lobbyist, feeding off the mess he helped create.

Washington is a cesspool of human greed.

He's not subject to the same legal risks as anyone else who decides to originate non-QM loans?

"Washington is a cesspool of human greed".

I could not agree with you more!

He didn't create the mess -- Congress did. What Dat did is recognize that the QM definition would make a lot of lenders nervous and it would likely result in pull-backs from some lending. I'll give him the benefit of the doubt and suggest that his firm will attempt to address the shortfall in lending that the pull-back causes, at least until traditional lenders become more comfortable with the idea that making non-QM loans doesn't have to be the scary thing they think it is.

That is my take on it as well.

http://www.fenwaysummer.com/who-we-are/

6 of 6 Sr officers are from the CFPB

Who will independently regulate them?

(See Madoff.)

I get your point, Ed. But let's face it -- Madoff was a darling of the SEC, one of the most notorious "good ole' boy" networks in the regulatory "game." The Bureau, on the other hand, hasn't had time to devolve into a good ole' boy club.

"At Fenway Summer, our work is guided by the principle that products designed to actually serve consumers will be profitable, sustainable and earn customers' long-term trust.”

A quote from Raj Date. Very admirable...



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Well I for one am glad that there will be financial services company that will earn customer's trust. The rest of us are just in a for a quick buck after all.

I look forward to him showing all of us how to do this right.

http://www.iop.harvard.edu/consumer-financial-protection-bureau

The CFPB staff includes more than one hundred Harvard alumni.

Oh, my, gotta watch out for The Crimson.

After all, they include Theodore Kaczynski.

I agree with Pale; just because you can do it, doesn't mean it's the right thing to do.

Snippet from today's ABA Newsbytes:

Senior House Republicans expressed concern Wednesday about the departures of several top Consumer Financial Protection Bureau officials, who may “have left the CFPB in order to profit from rules they helped create.”

Substitute "Congress" for "the CFPB" in that sentence, and it would be just as applicable. Sheesh; can anything good come out of the Beltway?

I think I want to move to Canada.

Here's a link to the letter sent by Congress to Director Cordray about this issue.

http://www.aba.com/Tools/Ebulletins/Documents/CongressLetterCordrayTransparency.pdf

Personally, I thought leaving CFPB 'to spend more time with family' and, less than three months later, opening Fenway was a flashing red light over Date's head. Seems those of us questioning this were on the same track as the Congressional Oversite committee that is now investigating the integrity of the CFPB and the conduct of some of the most senior former officials.

It is noted that this thread is not in the private section. Perhaps members of congress read BOL.

Naw - they don't read anything. That is witnessed in the bills that they pass. Why read when you already know it all???