IMA Prime Times: May 2018 Iowa Mortgage Association

May 2018


President's Message

Association Updates
Industry News


IMA Unveils New Mission Statement, Website
I am excited to announce our new mission statement for the Iowa Mortgage Association: Connecting the mortgage community through education and resources to promote homeownership. The board has been working on strategic planning over the last three months, and one item that was at the top of our list was creating a mission statement that told what we do, how we do it, whom we do it for and the value we bring. We also wanted it to be something that was short and to the point that explained our association. We feel we have succeeded.  

We also have a new website. If you have not visited the updated website, I hope you will take a little time to visit and check it out.

Have a wonderful month!

Marcy Wagner
TitleCore National


Nominations Open for IMA’s Mortgage Professional of the Year Award
The Iowa Mortgage Association (IMA) is pleased to announce the formation of the Mortgage Professional of the Year Award. The award will be given at the 2018 Fall Convention on Oct. 2, to recognize a distinguished mortgage professional in the industry. The nomination deadline is Aug. 1, 2018.

Nominees symbolize excellence in the following categories:
  • Represents themselves, their company and the industry with the highest standards of ethics and excellence.
  • Demonstrates a continued commitment to community involvement.
  • Has made a significant contribution to the mortgage industry.
  • Is a member in good standing of the Iowa Mortgage Association. 

Nominate a candidate.

Over 30 Mortgage Professionals Attend IMA Boot Camp
The Iowa Mortgage Association's (IMA) second annual Boot Camp seminar, held on April 12-13, educated more than 30 mortgage professionals. The two-day event featured industry professionals presenting on a variety of topics that mortgage professionals need to know to be successful. The seminar included sessions on taking a strong application, mortgage processing, understanding the secondary market, underwriting, compliance, mortgage insurance and business development. Thank you to all the instructors and participants who made this event a success.


CFPB Closes TRID 'Black Hole'
The Consumer Financial Protection Bureau (CFPB) issued a final rule on April 26, 2018, (“2018 TILA-RESPA rule") settling a long-debated TILA-RESPA Integrated Disclosure (TRID) rule question: Can a creditor reset a tolerance basis due a changed circumstance with a Closing Disclosure? As the rule was originally written and implemented, a creditor could only use a Closing Disclosure to reset tolerances if there are fewer than four business days between the time the creditor is required to provide the Closing Disclosure reflecting the revised estimate and consummation. In many instances, creditors were unable to reset tolerance resulting from valid changed circumstances due to the four-day time constraint.

The 2018 TILA-RESPA Rule removes this four-business day limit on a creditor’s ability to reset tolerances with a Closing Disclosure. Thus, if a changed circumstance or other triggering event has occurred, the 2018 TILA-RESPA Rule permits a creditor to reset tolerances with either an initial or corrected Closing Disclosure regardless of the number of days between consummation and the date the Closing Disclosure reflecting the revised estimate is required to be provided to the consumer. The creditor must provide the consumer with the disclosure reflecting the revised estimate at or before consummation and within three business days of receiving information sufficient to establish that the changed circumstance or other triggering event has occurred. Additionally, the consumer must still receive an initial Closing Disclosure at least three business days prior to consummation. A new three-day waiting period is only required for a corrected Closing Disclosure if the APR becomes inaccurate, a prepayment penalty is added, or the loan product changes from the loan product previously disclosed.

This final rule becomes effective June 1, 2018, for applications in process as of that date and those received on or after June 1, and can be found in the May 2, 2018, Federal Register.

Regulation X and Z Exam Procedures Updated
The Task Force on Consumer Compliance of the Federal Financial Institutions Examination Council recently developed the interagency examination procedures for the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA). The procedures reflect the following amendments to Reg. Z and Reg. X published by the Consumer Financial Protection Bureau (CFPB):
  • Amendments to Regulation Z and Regulation X related to mortgage servicing that were effective in October 2017, unless otherwise specified.
  • Other amendments to Regulation Z published through April 2016, including rules related to mortgage lending by small creditors serving rural and underserved areas. 
The procedures do not incorporate the 2017 amendments to Reg. Z regarding the CFPB’s TILA-RESPA integrated disclosure rule or regarding prepaid accounts. Those amendments will be addressed in a future update.

The revised procedures are available at:
SCRA Notice Revised ... Again
As previously reported in IMA communications, per the National Defense Authorization Act for Fiscal Year 2018, the U.S. Department of Housing and Urban Development (HUD) has updated the Servicemembers Civil Relief Act (SCRA) notice to reflect the extended protections related to mortgages, mortgage foreclosures and evictions for members of the uniformed services. The original updated notice reflected an incorrect expiration date of March 31, 2020. HUD has since revised the notice to reflect an expiration date of 2021. The updated notice is now available on HUD’s website. Lenders are encouraged to use only the notice with the expiration date of March 31, 2021.

2017 HMDA Data Released
The Federal Financial Institutions Examination Council (FFIEC) announced the availability of data on mortgage lending transactions at 5,852 U.S. financial institutions covered by the Home Mortgage Disclosure Act (HMDA) on May 7, 2018. The release included loan-level HMDA data that covers 2017 lending activity submitted by financial institutions on or before April 18, 2018. Unlike in past years, the HMDA loan-level data made available to the public will not remain static but will be updated on an ongoing basis to reflect late submissions and resubmissions. 

Financial institution disclosure statements and MSA and nationwide aggregate reports for 2017 HMDA data will be available here. Tools to search and analyze the HMDA data are available here. More information about HMDA data reporting requirements is available here.

USDA RD Now Financing Existing Manufactured Housing Units
The U.S. Department of Agriculture Rural Development (USDA RD) is now providing financing for existing manufactured housing units, including new units which have been on a dealer’s lot more than a year, through its Guaranteed Home Loan and Direct Home Loan programs.  

To be eligible for a USDA home loan the units must:
  • Have a floor area of at least 400 square feet.
  • Have been constructed on or after January 1, 2006.
  • Meet the Comfort Heating and Cooling Certificate Uo Zone value for the location.
  • Be inspected utilizing U.S. Department of Housing and Urban Development (HUD) Form 309 – Manufactured Home Installation Certification and Verification Report. Qualified inspectors include: manufactured home or residential building inspector, professional engineer, registered architect, HUD-accepted Production Inspection Primary Inspection Agency (IPIA) or a Design Approval Primary Inspection Agency (DAPIA), or International Code Council certified inspector.
  • Have no alterations or modifications since it was manufactured.
  • Towing hitch and running gear must be removed.
  • Unit must be taxed as real estate.
  • Remaining economic life must meet or exceed 30 years. 
Guaranteed loan applications for existing manufactured homes must be manually underwritten. Applicants must meet eligibility criteria set forth in USDA Rural Development regulations. For more information about USDA RD’s Guaranteed Home Loan Program please call 515-284-4667, email or visit

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