In response to the Senate Bill passed last week (Senate Bill 3217) regarding loan originator compensation, many of you reached out with questions on how this impacts our organization, as well its timing.There have been rumors of this change for months, and PRMI has been closely monitoring the situation since these rumors first began in early 2009.On February 3^rd of this year, I issued an update on the status of this legislation, and our response as to it as an organization.We will continue to communicate with you as this initiative moves forward in the coming months, and as we have new information.


 While we do fully expect that there will be new law that will direct how the industry compensates originators, there is still much work to be done before that Bill is finalized.The Senate Bill still has to be reconciled with the House Bill, and the final version is likely to look different than what was passed last week.Realistically, based on the guidance of our attorneys in Washington D.C., we don’t expect to have to implement any changes for another 18 months.  Nevertheless, we believe that by preparing now, we can make this a great opportunity for our branches by creating a solution that will not only be attractive to our organization’s existing originators, but to new originators who will find PRMI’s resolution superior to that of their current employer.You can feel confident that we will provide both the guidance and the tools to make any changes seamless for both the branch and the originator.
 

This change is just the latest example of regulatory forces that are only getting more sharply focused on how we do business.  This regulatory focus creates a great challenge for all in the industry, and a great opportunity for those few who have connectivity, influence, vision, and the ability to adapt both process and strategy to the new realities.  In our 12 years serving this industry - and never more than in the last 2 years - PRMI has proven to be among those few mortgage banking organizations that have turned industry challenge into a marketplace advantage.

 
As the regulatory environment changes and as PRMI grows, we’ve recognized that we have to stay even more connected to the “street”, both in what’s happening in Washington D.C., as well as in how we keep our Partners informed. 

 

A big part of keeping our Partners connected is including them in how we respond to these changes.  In August of last year, we announced the launch of the Partner Advisory Council (PAC).  The PAC is a committee of Partners from across the country who PRMI relies upon to help “steer the ship” in terms of how our Partners would have us respond to the many industry changes impacting our organization.  The PAC plays a critical role in helping PRMI’s leadership shape our organization in a way that balances the compliance imperatives, with the business needs of our Branch Partners.  The PAC is every Partner’s voice in influencing the direction of this business.  As such, we encourage each of you to keep the lines of communication open with those members so that your voice can be heard on all the changes impacting our business.
 

Adapting effectively to change has been one of the things that defines this organization, and will continue to be our commitment to our Partners on this issue, and any others that may surface.