IMA Prime Times: November 2018 Iowa Mortgage Association

November 2018


President's Message

Association Updates

Industry News

Business Planning for 2019 Will Be Critical
With our market shifting and rates increasing, everyone around the market is looking at ways they can prepare for 2019. From budgeting to business development planning, now is the time to get yourself organized to be successful next year.

In the latest news from the Mortgage Bankers Association’s (MBA’s) Weekly Mortgage Applications Survey, new applications for the week ending Nov. 2, were at their lowest level since December 2014. Purchase applications decreased 5 percent from one week earlier to the lowest level since November 2016. There is a lot of talk in the industry about mergers and acquisitions as well. As costs continue to increase and margins narrow, managing efficient teams is going to be the way of the future.

The Iowa Mortgage Association (IMA) has several events coming up that can help you to make a plan and get motivated for 2019. I am so excited to attend the ICAAR event, featuring Tom Ferry, that the IMA is sponsoring next month, and in January we have a business planning retreat for sales planned. These events, along with several publications in our industry are a good reminder that making a plan for your production is critical.

Having a plan means you have scheduled regular marketing campaigns, you are using digital strategies and you are looking for ways to incorporate your whole team in the hunt for new business. As the refinance market trends down and purchase inventory remains thin, diversifying your services and becoming strong in your niche programs will also help you to shine in 2019.

It’s always a blessing to work with you in IMA. If you have new ideas to share or know of a hot trend that other members could benefit from hearing, I always appreciate your feedback. No matter where the market trends sit, our mission is to increase home ownership in Iowa.

I wish you a very blessed Thanksgiving with your family and friends.

Laura Kay Sheely
Arch Mortgage Insurance Company

Business Planning Retreat Coming in January
The Iowa Mortagage Association (IMA) is hosting a business planning retreat Jan. 8 at the Iowa Bankers Association offices in Johnston and Jan. 9 at the Isle Hotel in Bettendorf. The seminar is designed to energize attendees with new ideas for 2019 and help to build a solid business plan that will put those ideas into action. It will include group work sessions, idea brainstorming and plenty of ways for attendees to transform their production for the next 12 months. At the end of the day, attendees will walk away with a complete business plan to implement in 2019. The cost is $50 for IMA members and $100 for nonmembers. Learn more or register.

Share Your Story in the IMA Member Spotlight

Have you seen the member spotlights on the Iowa Mortgage Association (IMA) Facebook page? Would you like to be featured also? Email us a current photo and answers to the questions below. 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

Member Spotlight Questions
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? 

Flood Determination Expired Oct. 31
The current version of the Special Flood Hazard Determination Form (SFHDF), FEMA Form 086-0-32 published on June 1, 2016, expired on Oct. 31, 2018. The SFHDF is required for all federally backed loans and is used by lenders to determine the flood risk for their building loans. FEMA (Federal Emergency Management Agency) oversees the National Flood Insurance Program (NFIP) and is responsible for updates to the SFHDF.

FEMA has yet to indicate when an updated form will be released. In the past, FEMA has provided guidance indicating the existing form should be used until the new form is made available. For example, the previous version of the SFHDF (published April 2012) was set to expire on May 30, 2015; the new and current form was not published until June 1, 2016. The SFHDF is available on FEMA’s website.

Reminder: Renew NMLS Registration Before Jan. 1
The Nationwide Mortgage Licensing System (NMLS) and Registry’s 2019 renewal period begins Nov. 1 and continues through Dec. 31. All Mortgage Loan Originators (MLOs), as defined in Regulation G, 12 CFR 1007, who are registered with the registry are required to complete the annual registration renewal prior to Dec. 31.

One exception to the renewal requirement is for MLOs who completed their registration with the registry less than six months prior to the end of the annual renewal period which is Dec. 31. For example, if an MLO was registered on or before June 30, 2018, they must renew their registration during the 2019 renewal period; however, if the MLO was registered on or after July 1, 2018, renewal is not required during the 2019 renewal period.

CFPB Updates HMDA Resources
The Consumer Financial Protection Bureau (CFPB) has updated the Home Mortgage Disclosure Small Entity Compliance Guide to reflect amendments made by Section 104(a) of the Economic Growth, Regulatory Relief and Consumer Protection Act and the 2018 interpretive and procedural rule (the partial exemption for small filers.) The updated guide can be found on the CFPB’s website.

The guide was updated to reflect the “small filer” exemptions applicable to certain data points. Clarifications were made to other parts of the guide, as well including which transactions count when determining if the loan-volume threshold has been met (Section 4.1.2.) and what loan amount to report when a counteroffer is made (Section 5.8). A complete list of the updates can be found in the “version log” at the beginning of the guide. 

The CFPB has also made available the Filing Instructions Guide (FIG) for data collected in 2019. The FIG is a technical resource to help financial institutions file HMDA data collected in 2019 and reported in 2020. The FIG can be accessed at under Help for Filers.

Changes to USDA Rural Development Handbook Effective Dec. 15
The U.S. Department of Agriculture (USDA) Rural Development recently published Procedure Notice (PN) 518 outlining upcoming changes to Chapter 9 of Handbook (HB-1-3555) for the agency’s Single Family Housing Guaranteed Loan Program. The changes to HB-1-3555 are effective Dec. 15. Please visit the USDA LINC Training and Resource Library for information about the changes and a copy of HB-1-3555 Chapter 9. The chapter has been streamlined and contains simplified language. Some of the more significant changes include:

  • Added guidance for proof of separation that has exceeded three months to exclude an adult (and their income) from the household.
  • Updates to shared custody – applicant certifies the number of household members on Form RD 3555-21. No additional documentation required (use of IRS Publication 501 has been removed).
  • Assets guideline has been raised from a $5,000 threshold to a $50,000 threshold for inclusion in annual income calculation.
  • Balance sheet is no longer required for self-employed applicants.
  • New matrix (Attachment 9-A) outlining guidance on income and deductions.

For more information about USDA Rural Development’s guaranteed home loan program, please call 515-284-4667, email or visit

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