IMA Prime Times: July 2019 Iowa Mortgage Association

July 2019


Ups and Downs on Mortgage Applications a Wild Ride
Watching the Mortgage Bankers Association’s weekly reports on mortgage applications is like riding a summer roller coaster — up and down week by week. Summer usually brings highs in the purchase applications and lows when the holidays hit the calendar. June was no exception. You could say that we are in challenging times and all we can do is hold on for the ride.

In other national news, President Donald Trump issued an executive order on Housing Affordability in June. In a statement from Robert D. Broeksmit, President and CEO of the MBA commended the move, saying, “Housing affordability is an issue affecting millions of Americans, and we believe the public and private sectors must work together on solutions that ensure those looking to rent or buy a home are given every available opportunity."

The MBA continues to have a strong focus on taking government sponsored enterprises Fannie Mae and Freddie Mac out of conservatorship. With our recent visit to Washington. D.C., we learned that the Trump administration is also motivated to make this move, but a solution will require working together with Congress. What does GSE reform mean for Iowa? Lenders who send their loans directly to Fannie or Freddie, and those who sell their loans to an investor who follows Fannie and Freddie guidelines should have an interest. Fannie Mae alone has a profit of $16 billion in 2018 and a total asset value of $3.4 trillion. If the government finally steps back from the GSE’s and releases them back to being fully public funded companies, the investors in these companies also take back control. Without government oversight, the market will dictate what their appetite is for risk. 

As we saw in the years before the mortgage crash in 2008, our mortgage backed security market can stretch its wings pretty far in the risk platforms of sub-prime and alternative guideline loans. Fannie and Freddie set the boundaries for what we consider our conforming lending box, so changes in their policies and guidelines can have a direct impact on how we lend here in Iowa.

Laura Kay Sheely
Arch Mortgage Insurance

Mortgage Professional of the Year Nominations Due Aug. 1
There is still time to submit your nomination for the IMA’s 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. Submit a nomination.

Registration Open for IMA Fall Conference
Mark your calendar for the IMA’s Fall Conference. This annual event is Oct. 8-9 at the Meadows Events and Conference Center in Altoona. This year’s conference features sessions on increasing mortgage sales, compliance, social media, secondary market and more. There will also be a golf outing on Oct. 7, at Copper Creek Golf Club in Pleasant Hill. Learn more or register.

Optional Use of New URLA Postponed
At the direction of the Federal Housing Finance Agency, Fannie Mae and Freddie Mac announced on June 12 that the optional use period for the redesigned Uniform Residential Loan Application form and corresponding datasets will not begin on July 1, 2019, as previously scheduled. The effective date of the form will be revised and an updated version will be provided at a later date. Follow the latest developments related to the URLA.

2019 List of Distressed or Underserved Geographies
The 2019 list of distressed or underserved nonmetropolitan middle-income geographies, where revitalization or stabilization activities are eligible to receive Community Reinvestment Act consideration under the community development definition, has been released. The criteria for designating these areas are available on the Federal Financial Institutions Examination Council website. The designations continue to reflect local economic conditions, including unemployment, poverty and population changes.

HMDA Comment Period Extended
On May 8, 2019, the CFPB published an Advance Notice of Proposed Rulemaking soliciting comments relating to the data points the CFPB’s October 2015 final rule implementing the Home Mortgage Disclosure Act added to Regulation C or revised to require additional information. The ANPR requests feedback on which, if any, of the new or revised data points need additional clarification or fail to serve HMDA’s purpose. The ANPR also solicits comments relating to the requirement that institutions report certain business- or commercial-purpose transactions under Regulation C. The original ANPR provided a 60-day comment period that ended on July 8, 2019. To allow interested persons more time to consider and submit their responses, the CFPB has determined that an extension of the comment period until Oct. 15, 2019 is appropriate. Learn more.

To remove yourself from this mailing, click here.