IMA Prime Times: May 2019 Iowa Mortgage Association

May 2019


President's Message

Association Updates

Industry News

Technology Changes but Relationships Still Matter
In our industry we have become accustomed to constant change with technology advancements and compliance regulations. Recently we saw some big steps forward with our remote notary legislation in Iowa. This will bring a mortgage lending mobile experience even closer to reality for our customers. This could not have happened without the dedicated partnerships and work of our partners. While a small group worked to move this forward, we will all benefit from the enhancement.

Looking forward we can expect to have lots of work with our loan origination systems. The new 1003 changes are available for implementation starting July 1 and are required to be implemented by the first quarter of 2020. This will transform the way we collect data, interview our customers, and transmit information back and forth with our business partners. We can use our resources within the IMA and leverage our partnerships and collaboration to make this transition better. Let’s talk more about how we can support each other and what training and services the IMA can provide to help. 

Product and pricing engines are really going full-steam now. The Encompass Total Quality Loan model now allows customers to become fully-automated in their selection of service providers. Optimal Blue has recently enhanced its offering to make the rate selection process smoother, and many more are working on launching ways in which selecting loan programs will be faster and more efficient. What does this mean for the relationship in our business? If we are looking at a screen to determine best price, are we taking into account the value our vendors bring us? At times, we know price is the dominant factor in how a customer decides to get a loan, but when does relationship matter? I would encourage each of us to define this for ourselves going forward. Together we form great partnerships throughout the IMA network and those partnerships bring training, consulting, and business functions far beyond bottom line price. 

As always, I thank you for your membership in the IMA. Together, we are doing great things to expand homeownership in Iowa.

Laura Kay Sheely
Arch Mortgage Insurance

Nominations Open for IMA’s Mortgage Professional of the Year Award
The Iowa Mortgage Association is pleased to announce the formation of the Mortgage Professional of the Year Award. The award will be given at the 2019 Fall Convention on Oct. 8, to recognize a distinguished mortgage professional in the industry. The nomination deadline is Aug. 1, 2019.

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 IMA. 

Nominate a candidate.

More HMDA Changes Proposed
On May 2, the Consumer Financial Protection Bureau issued a proposed Home Mortgage Disclosure Act rule as well as an advance notice of proposed HMDA rulemaking. The CFPB also issued a summary document that focuses on the proposed rule, and an unofficial redline of how the proposed rule would amend the HMDA rule, known as Regulation C. 

The proposed rule addresses three main aspects of the HMDA rule:

  • A proposal to increase the volume threshold that triggers reporting of closed-end mortgage loans from at least 25 originated loans in each of the prior two calendar years to at least 50 originated loans in each of the prior two calendar years. The CPFB also solicits comments on an alternative threshold of 100 originated loans in each of the prior two calendar years. 
  • A proposal to continue until Jan. 1, 2022, the temporary volume threshold that triggers reporting of open-end lines of credit of at least 500 originated lines of credit in each of the prior two calendar years, and then implement a permanent threshold of 200 originated lines of credit in each of the prior two calendar years.
  • A proposal to incorporate into Regulation C the interpretation and procedures previously issued by the CFPB to implement the partial exemption from HMDA reporting for smaller volume bank and credit union lenders adopted in the Economic Recovery, Regulatory Relief and Consumer Protection Act. 

Comments on this proposal are due 30 days after publication in the Federal Register, which has not occurred as of May 10.

The advance notice of rulemaking solicits comments on whether to make changes to the data points the 2015 HMDA rule added to the data collection and reporting requirements. In addition, the CFPB solicits comments on the requirement institutions report business and commercial-purpose loans made to a non-natural person and secured by multifamily dwellings. Comments on this proposal are due July 8, 2019; the advanced notice of proposed rulemaking can be found in the May 8, 2019 Federal Register.

TRID Assumptions Fact Sheet
The Consumer Financial Protection Bureau issued a fact sheet to help lenders determine when the TILA-RESPA integrated disclosures — the Loan Estimate and the Closing Disclosure — are required when mortgages are assumed. The fact sheet addresses TRID requirements when a new consumer is added or substituted as an obligor on an existing closed-end credit transaction secured by real property and that is not a reverse mortgage. The fact sheet uses a flowchart to illustrate when the Loan Estimate and Closing Disclosure are required, and it discusses the specific factors that characterize an “assumption” as defined in Regulation Z. Read the fact sheet. 

Redesigned HMDA Data Webpage
The Consumer Financial Protection Bureau (CFPB) recently released a redesigned version of its Home Mortgage Disclosure Act data and research page. The webpage provides access to various types of HMDA information and data, including HMDA data of individual institutions, and HMDA data aggregated on a national basis and a metropolitan area basis.

URLA Optional Use Period Begins July 1
Fannie Mae and Freddie Mac have established an optional use period for two redesigned forms, Fannie Mae Form 1003 and Freddie Mac Form 65, and the corresponding automated underwriting system (AUS) datasets based on MISMO v3.4. This Uniform Residential Loan Application optional use period begins on July 1, 2019, and ends on January 31, 2020, for new applications.

Lenders who use redesigned Fannie Mae Form 1003 beginning in July will notice the dataset submitted to USDA Rural Development’s Guaranteed Underwriting System will not correspond with new form fields. When this happens, please upload the redesigned Form 1003 into the Guaranteed Underwriting System, if required, or retain a copy in the permanent case file.

USDA Rural Development’s Guaranteed Underwriting System will only accept the 1003 v3.2 flat file or MISMO v2.3.1 file formats until February 1, 2020. It is anticipated that the Guaranteed Underwriting System will be ready to accept the MISMO v3.4 dataset beginning in February 2020.

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

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