IMA Prime Times: March 2018 Iowa Mortgage Association

March 2018


President's Message

Association Updates
Industry News


Hope to See You at the IMA Spring Conference!
We're getting closer to warmer weather, which means we're also getting closer to the Iowa Mortgage Association (IMA) Spring Conference in Cedar Rapids! If you haven't already signed up to attend, there's still time to register. The conference is a great opportunity to expand your knowledge and grow as a mortgage professional. Hope to see you there!

Marcy Wagner
TitleCore National


Tell us about yourself for the IMA Member Spotlight! 
Email us a current photo and answers to the following questions. We’ll put everything together in an IMA Member Spotlight profile, send it back to you for final approval, and then feature it on the IMA Facebook page. 
  • How did you get involved in the mortgage industry?
  • What is the biggest challenge or opportunity you have seen in the mortgage industry?
  • What advice would you give people just entering the industry?
  • Do you have a quick tip for saving time, generating leads, tracking information, etc. that you would like to share?
  • When you are not at work, what do you like to do most?
  • What is a quote or a guiding principle you live by? 
Spotlights received by March 23 will be eligible for a $100 gift card, so don’t delay!


CFPB Publishes 2018 List of Rural and Underserved Counties
The Consumer Financial Protection Bureau (CFPB) has published the 2018 list of rural and underserved counties and a separate 2018 list that includes only rural counties. The CFPB has also updated the rural and underserved areas tool on its website for 2018. 

The lists and the tool help creditors determine whether a property is located in a rural or underserved area for purposes of applying certain regulatory provisions related to mortgage loans, including:
  • The ability to make Balloon Payment Qualified Mortgages (QMs) – Only small creditors that fall below the asset size and origination thresholds and originated at least one of their closed-end, consumer-purpose, first-lien loan secured by a dwelling located in a rural or underserved area during the prior calendar year are eligible to make Balloon Payment QMs. 
  • An exemption from the requirement to escrow for first-lien HPMLs – Like the Balloon Payment QM provision, small creditors who meet the requirements to be eligible to offer Balloon Payment QMs, may also be eligible for an exemption to Reg. Z’s Higher-Priced Mortgage Loan (HPML) escrow requirement, provided the small creditor does not maintain escrows other than for HPMLs with application dates between April 1, 2010 and May 1, 2016. 
  • An exemption to the HPML second appraisal requirement – Properties located in a rural county are not subject to the second appraisal requirement in Reg. Z’s HPML rules for homes that have been “flipped.”   
The 2018 lists can be found here. The rural and underserved areas tool can be found here.

CFPB Launches New HMDA Tools
The Consumer Financial Protection Bureau (CFPB) launched the 2018 HMDA Loan/Application Register (LAR) formatting tool to help banks create a data file that can be submitted electronically. The tool should be used for data collected in 2018 and reported in 2019. Access the LAR formatting tool.

The FFIEC has also released A 2018 Guide to HMDA Reporting – Getting It Right! The 2018 edition reflects changes to Regulation C effective Jan. 1, 2018. The 327-page guide incorporates many CFPB tools currently posted to the CFPB website. 

Finally, the CFPB has also made minor updates to the 2018 Filing Instructions Guide. View the 2018 Filing Instructions Guide.

AQB Makes Changes to Appraiser Qualification Criteria
The Appraisal Qualifications Board (AQB) has announced that it will adopt a proposal to change the qualification criteria for real property appraisers. The change is the result of concerns about the shortage of appraisers, particularly in rural areas. Effective May 1, the AQB will reduce the college-level education degree requirements for licensed residential and certified residential appraisers, create an alternative track for licensed residential appraisers to become certified without obtaining a bachelor’s degree and reduce the number of field hours needed to obtain certification from 2,000 to 1,000 for licensed appraisers and 2,500 to 1,500 for certified appraisers. The AQB states these changes are an important step toward encouraging new entrants into the profession and addressing the appraisal issues currently facing the industry. For more information see the AQB announcement here.

USDA RD Guaranteed Loan Program Requires Itemization
of Loan Discount Points and Origination Fee

The U.S. Department of Agriculture (USDA) Rural Development (RD) guaranteed home loan program requires that loan discount points and loan origination fees be itemized separately on the settlement statement so the amount of the loan used for loan discount points can be accurately identified. Also, loan discount points, other than to reduce the effective interest rate, cannot be financed as part of the loan. Discount points must be reasonable, customary for the area and cannot be more than those charged to other applicants for comparable transactions. Permissible discount points financed may not exceed two percentage points of the loan amount for a non-streamlined refinance. Loan discount points representing fees other than to reduce the effective interest rate, such as to compensate for a low credit score or low loan amount, are ineligible loan purposes. Lenders must begin with an eligible interest rate prior to reducing the effective interest rate. Lenders are encouraged to review USDA Rural Development’s current lender handbook for more information.

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