{"version":1,"type":"rich","provider_name":"Libsyn","provider_url":"https:\/\/www.libsyn.com","height":90,"width":600,"title":"The Community Bank Mortgage Business Model with Luanne Cundiff","description":"On the latest episode of the ABA Banking Journal Podcast, sponsored by Windstream Enterprise, community bank CEO Luanne Cundiff discusses the current state of the mortgage market and how recent regulations are affecting it. From the customer point of view, \u201cyou have to set the expectations up front during the application process; otherwise they\u2019re not going to be satisfied,\u201d she says. At her bank \u2014 First State Bank of St. Charles, located in the western suburbs of St. Louis \u2014 employees ask loan applicants if they have closed a loan since the TILA-RESPA integrated disclosures came into effect, and they clarify new expectations if not. New regulations have also changed how First State Bank services single-family mortgages, Cundiff says, which account for about 63 percent of the $374 million-asset bank\u2019s net loans and leases. At the end of 2017, she explains, the bank had to sell mortgage servicing rights for the first time \u201cbecause we bumped up against that capital limit of 10 percent\u201d \u2014 although the bank prefers to retain servicing whenever possible. \u201cWe\u2019re well-capitalized, but the sheer dollar amount does not equip us for handling all those loans on our books,\u201d she adds. Cundiff also discusses the growing need for scale in the mortgage business, First State Bank\u2019s celebration of its 150th anniversary last year and the value of serving on ABA\u2019s Community Bankers Council. ","author_name":"ABA Banking Journal Podcast","author_url":"https:\/\/bankingjournal.aba.com\/tag\/podcast\/","html":"