Higher interest rates of real estate

Count Nationstar Mortgage CEO Jay Bray among those who were surprised by the election of Donald Trump, although Bray tells HousingWire that he is looking forward to working with the incoming Trump administration and is “cautiously optimistic” about the impact that the president-elect could have on the financial services business.

HousingWire sat down with Bray this week at Nationstar’s headquarters to discuss the company’s rebrand into Mr. Cooper (click here to read more about that), the results of the election, and much more.

“I was surprised personally about the outcome of the election,” Bray told HousingWire. “In general, we would work with any administration, frankly. They’re a big part of our lives. And we’ve done it for the last 20 years and will continue to do it.”

As Bray acknowledges, the financial services industry was the subject of a raft of new regulations in the wake of the financial crisis, but the Trump administration is already stating that it plans a regulatory rollback and perhaps even the “dismantling” of the Dodd-Frank Wall Street Reform Act.

Bray characterized himself as “cautiously optimistic” about the impact of the Trump administration on financial services, noting the impact of regulations on Nationstar’s ability to innovate and create new products or services.

“If you take the regulatory environment, it’s been significant,” Bray said. “The new rules, the new regulations, take TRID in and of itself. This year, 80% of our resources are focused on making sure TRID gets implemented properly.”

TRID, the TILA-RESPA Integrated Disclosure Rule, is the work of the Consumer Financial Protection Bureau. The rule pushed the mortgage industry to create new forms that are designed to inform borrowers about all the costs associated with a mortgage before they close on the loan.

The rule, implemented just over a year ago, had a significant impact on the mortgage business, as chronicled here.

In Bray’s eyes, the regulation is helpful for consumers, but it inhibited Nationstar’s development.

“If you go back to the customer experience, post-crisis, there’s been so much new regulation that frankly we’ve had to dedicate most of our resources to it,” Bray said. “So the ability to innovate, the ability to create better customer products, has probably not been as great because we’ve got to get these rules right.”

Trump has pledged a freeze on new regulations once he takes office, and his transition team said recently that the Trump administration will move to dismantle Dodd-Frank.

Bray said that he hopes that any regulatory slowdown, pause, or rollback will allow for an evaluation of which rules work and which ones don’t.