Jefferson County Clerk’s Office nonbanks are dependent on short-term credit to finance their operations, and this credit can become more expensive, or dry up entirely, when financial market conditions tighten. As the business model of some nonbanks relies on mortgage refinancing, this revenue tends to diminish when interest rates rise. Nonbanks also, on average, service mortgages with a higher probability of default, so they are exposed to greater credit losses when house prices decline. Nonbank lenders that primarily originate mortgages insured by the Federal Housing Administration (FHA) or that are guaranteed by the Department of Veterans Affairs are particularly vulnerable to these strains. Nonbank mortgage companies were hit hard during the financial crisis and many went out of business. The total One of the biggest group of customers the JCCO Deed Room serves is the so-called “Nonbank banks”. The VIP previously looked at local mortgage lenders, such as credit unions. Non-banks, however, are just the opposite, lending money they borrow in the short-term commercial paper market and then lend long-term on property. This can be a recipe for success. Quicken Loans, for example, is one of the fastest growing financial enterprises in the world, even putting their profits back to work rebuilding their hometown, downtown Detroit. Others, though, have failed. Just last year Ditech, once the highest-flying home lender, went bankrupt and was delisted from the stock exchange. Nonbanks originated about half of all mortgages in 2016, up sharply from 20% in 2007. The share of mortgages issued by nonbanks grew, in part, because banks pulled back from extending mortgage credit to borrowers with lower credit scores; this happened in the aftermath of the financial crisis. Nonbanks may also have been quicker to take advantage of technological innovations in mortgage origination. A recent study from the Brookings Institute found there could be some more Ditech type failures if the economy went sour again, such as in 2007. In particular, Brookings found After the cold and rainy winter weather, it is time to celebrate spring. Louisville could not be any more beautiful with its bright greens and pops of color throughout the city. Soon Jefferson County will be filled with festivals, community gatherings, and the many signature events that Derby brings to our city. The Motor Vehicle, Information Technology, and Finance staffs continue to work with the Kentucky Department of Transportation on the new KAVIS (Kentucky Automated Vehicle Information System) statewide system. Upgrades and changes are frequently taking place. The Election Center staff is preparing for the May 21st Primary Election. We are always in need of Election Officers. If you would like to work as an Election Officer, you can apply online or call the Election Center at 502.574.6100. It is a busy time of year. In case life gets hectic, save yourself a trip to one of our branches and consider the convenience of renewing your motor vehicle registration by phone or online. If you have any questions or suggestions as to how the Clerk’s Office can better serve you, please contact us. Bobbie Holsclaw Jefferson County Clerk A Message from the Jefferson County Clerk The Biggest Mortgage Lenders By: Frank Friday Government Affairs Executive Spring 2019 Continued on page 2