The Structured Finance Industry Group Inc. has selected Michael Bright to serve as president and CEO.

Bright will lead SFIG's education, policy and advocacy initiatives, helping to achieve the group's goal of building the broadest possible consensus among members across the industry, and reinforcing the understanding that securitization is an essential source of core funding for the real economy. He will assume his new position on January 21 and report to the trade group’s board. SFIG is a member-based trade industry group that works to improve and strengthen the broader structured finance and securitization markets.

Bright has extensive experience as a practitioner and leader across all aspects of the securities industries. He joins SFIG from Ginnie Mae, where he was executive vice president and chief operating officer, managing all operations for Ginnie Mae's $2 trillion portfolio of mortgage-backed securities.

Also, he has experience as a policymaking from his time on the staff of Senator Bob Corker, R-Tenn., and the Senate Banking Committee. Prior to joining Ginnie Mae in 2017, Bright was a director at the Milken Institute's Center for Financial Markets, where he led the institute's housing program. He was a member of BlackRock's financial advisory unit.

"The securitization industry plays a fundamental role in our economy and it is vital that policymakers and the industry work constructively together as the market continues to evolve,” said Bright. “I am honored to join the SFIG team and see tremendous opportunity to build on this group's success as the voice of securitization. I look forward to working with all of our members to represent the diverse views of this critical field and continuing to provide meaningful education, advocacy and connection for our members across all aspects of securitization."

"On behalf of the SFIG board, I am very pleased to welcome Michael to SFIG. His hands-on leadership experience in the financial markets and expertise with legislative and policy initiatives will be a significant asset for our members," said Howard Kaplan, chair of SFIG's board. "SFIG has established itself as an important industry voice thanks to the hard work, commitment and dedication of our member organizations, Operating Committee and staff, and Michael's proven ability to deliver results both in the public and private sectors make him a natural fit to lead SFIG in continuing that momentum."

Michael Bright, executive vice president and COO of Ginnie Mae, has accepted a position in the private sector and will resign from his position on January 16. Bright will serve as CEO of the Structured Finance Industry Group, a trade group. Maren Kasper, executive vice president of Ginnie Mae, will step in as acting president once Bright leaves. Kasper joined Ginnie Mae in June 2017.

His resignation follows those of Pam Patenaude, a Housing and Urban Development deputy HUD secretary; and Mel Watt, director of the Federal Housing Finance Agency, who left after five years in his post. With Bright moving on, Ginnie Mae, FHFA, Fannie Mae and Freddie Mac will be led by new people in 2019.

In his resignation letter, Bright wrote, “As you are aware, over the past two years Ginnie Mae’s total outstanding portfolio crossed the $2 trillion mark, and last year we served 1.9 million American families as they purchased or refinanced a home… “We have worked to police the prepayment speeds of our bonds, taking continuous efforts to ensure as much homogeneity and predictability across pools as possible. We have also enhanced the oversight of those who do business with Ginnie Mae, and, therefore, do business with the American taxpayer.”

"I want to thank Michael for his many contributions to Ginnie Mae over the last two years," said Ben Carson, secretary of Housing and Urban Development. "He has assembled a first-rate team and successfully managed and expanded a portfolio that enables millions of Americans to become homeowners each year. We wish him the best in his future."

Several steps can be taken can be taken to reform and strengthen the U.S. housing finance system even in the absence of federal legislation, according to a report.

It recommends measures to strengthen the housing finance system, including greater transparency into Federal Housing Finance Agency oversight of government sponsored enterprise activities, and more risk-based pricing combined with explicit affordable housing subsidies, according to "A Blueprint for Administrative Reform of the Housing Finance System,” from the Milken Institute Center for Financial Markets.

Further, it suggests a government sponsored enterprise rule that supports a housing finance system driven by private capital that can survive future downturns and maintain liquidity for creditworthy borrowers throughout the economic cycle. Also, among its recommendations are actions for the Consumer Financial Protection Bureau to take regarding the ability to repay-qualified mortgage rule and generating innovation while maintaining consumer protection.

The Federal Housing Finance Agency, Treasury Department, CFPB and others can take steps, even in the absence of legislation to reform the housing finance landscape and reduce barriers to achieving the bipartisan legislation required to finalize the post-crisis housing finance reform effort.

Until legislation is passed, the conservatorship of Fannie Mae and Freddie Mac should continue until Congress passes legislation to resolve critical GSE charter flaws and establish a safer, more effective system.

In addition, the following reforms are also included in the report:

• Expanding the functionality of the Common Securitization Platform and opening access to key GSE technologies to future competitors.
• Reducing or eliminating the GSEs' presence in markets that are adequately served by the private sector, such as second-home financing and most cash-out refinancing.
• Providing Ginnie Mae and FHA with resources to improve technology and operations.
• Making better use of the Federal Housing Finance Oversight Board to strengthen coordination among components of the housing finance ecosystem.

"These recommendations are drawn from deep expertise in our housing finance policy team, who bring decades of government and industry experience along with a commitment to crafting bipartisan solutions by focusing on substantive policy goals and the tools available to achieve them," said Michael Piwowar, executive director of the institute and a former commissioner and acting chairman of the Securities and Exchange Commission.

 Name: Steve Johnson

Title:  President

Company: Security National Mortgage Corp.

In the Mortgage Business Since: 1982

Number of Employees He Manages: 825

Security National Mortgage Corp. is an independent non-bank mortgage company that does business in 45 states, with branches in 23 of them. The majority of its volume, 80%-85%, is generated from five states: Utah, Texas, Nevada, Arizona and Florida. Security National originated $2.3 billion in loans during 2018.

How’d did you get into the business?

I came out of graduate school with a degree in international finance from the American Graduate School of International Management, now part of the University of Arizona. But I couldn’t get a job in that field. I knew nothing about the mortgage business, but the opportunity to be a loan originator came up. I asked, “Does it have health insurance?” It did, and I accepted the position.

 What are the characteristics of leadership that you think are most important?

It starts with having the right people. Being careful on who joins the team, but without looking for a cookie cutter type of person. There has to be confidence in each other—and we need to pull together with the same direction and goals. If you do that, despite all the egos and desires, we can move in the same direction. The key to attaining common goals, such as volume and financial stats, is communication.

 How do you see the difference between a manager and a leader?

That’s an interesting question. A clinical definition is that for people to follow you, you have to have a leader. A manager can chart X’s and O’s, but a manager can broadcast that out to the troops. You have to have both of these skills. And recognize weak spots and work to overcome them. In this position, you are obligated to perform as expected. So, you have to constantly be trying to improve.

 Who has inspired you during your career?

There have been so many that have inspired me, including my current boss, who is CEO of our parent company and the mortgage company. The trait is very hard work. These people that I have been privileged to work with now, and in the past, have been willing to do what it takes to be successful, and that’s a lot of hard work. That’s very important.

What do you look for in mentor?

I’m not sure I picked them. I have had really good bosses over the years. My first boss was a great example of someone that worked hard, was ethical and honest. She taught me to pay attention to details, to dot the I’s and cross the T’s. That was very important when I moved into secondary marketing.

Also, I've served as a mentor to people just getting started in the business. They've done well and advanced to executive positions. I've tried to pass on to them the same attributes I learned from my bosses.