IMA Prime Times: July 2020 Iowa Mortgage Association

July 2020

In Tough Times, It’s Important to Think of Others
Some of my greatest memories as a kid in the summer was working on my family farm. We were pretty much 100% hay farmers to take care of our cattle during the long northern South Dakota winters. Those summer days were long and hot. My dad never owned a tractor with a cab and only had AM radios on them. I listened to many a Twins games throughout the nights of raking or baling hay. The memories we make as a kid seem to be engraved into our thoughts forever. 

So far summer 2020 has been one that none of us will forget. Our industry is busting at the seams. We are seeing historically low rates, an extremely robust purchase market, a steady refinance boom, all in the midst of a worldwide pandemic. It really shows that Americans are resilient to the factors around them and are ready to move forward.

I do want to ask something of everyone and that is to look out for those around us. As we progress farther and farther through the current economic situation, we will start to see those we love fall down financially. Some of the programs that are set to help during this time are starting to expire while some businesses have yet to reopen. We sometimes get caught up in how busy we are and have stayed through this whole process and maybe miss that others are not doing as well.

Financially, we are — or should be — having some of the best times of our career. Simply, life is pretty good for most of us financially. I want to challenge everyone to think above yourself during this time. Is there someone personally, or some organization, that you can help financially? Please consider a gift or time or treasures to someone or something in need. My grandmother always told me, “You will receive back more than you can ever give.” 

Thank you all. Remember to stay safe, wash your hands, and strongly consider wearing a mask when out in public.

Thank you.

Scott Brekke
Great Southern Bank

2020 IMA Live Set for October
The Iowa Mortgage Association’s 2020 IMA Fall Virtual Event will take place in Oct. 12-16, with short sessions each day. The IMA will present five sessions that include great speakers, motivation, education, and even a chance to network. One fee will cover registration for an entire organization. Sessions include:

  • IMA Opening Event & Happy Hour, Oct. 12, 3-4:30 p.m. — Awards, association updates and fun.
  • Growth Over Goals, Oct. 13, 9-10 a.m. — Join Jordan Montgomery to discuss goals! How often do you obsess over your goals? Popular culture encourages us to set big goals and to strive to reach them. 
  • Compliance Update, Oct. 14, 9-10 a.m. — IBA’s Ronette Schlatter shares what you need to be thinking about now and for 2021. 
  • Messaging that Moves: Effective Strategies for Persuasive Writing, Oct. 15, 9-10 a.m. — Greta Perel will lead a discussion on how to persuade and motivate with your message What are some ways that you can make your writing more effective for social media and more. 
  • Failing Forward to Success, Oct. 16, 9-10 a.m. — Competing on NBC’s Emmy-nominated American Ninja Warrior, Alex Weber knows what it means to face fears, embrace challenges and overcome failures with passion, commitment, focus and perseverance.

Learn more and register.

CFPB Publishes New TRID Factsheet and FAQ
The Consumer Financial Protection Bureau published a fact sheet for lenders on title insurance disclosure requirements under the TILA-RESPA integrated disclosure rule. The fact sheet outlines disclosure requirements for lender’s title insurance and owner’s title insurance on the Loan Estimate and Closing Disclosure and provides illustrative examples.

The CFPB also added several new questions to its TRID FAQs regarding lender credits on the total of payments disclosure, the optional signature line, and separating consumer and seller information on the Closing Disclosure.

2019 HMDA Data Available
The Federal Financial Institutions Examination Council has announced the release of the 2019 Home Mortgage Disclosure Act data. A total of 5,508 reporting institutions (a decline of about 3% from 2018) reported information on 15.1 million home loan applications. The HMDA data is the most comprehensive publicly available information on mortgage market activity and used by industry, consumer groups, regulators and others to assess potential fair lending risks and for other purposes.

The FFIEC releases included several data products to serve a variety of data users:

CFPB Rule-Making Agenda Signals More Mortgage Lending Changes
On June 30, the Consumer Financial Protection Bureau published its Spring 2020 Rule-Making Agenda. The agenda lists the regulatory matters that the CFPB expects to focus on between May 1, 2020 and April 30, 2021. Mortgage matters included in the CFPB’s upcoming agenda include:

  • A proposed rule to address the anticipated discontinuation of LIBOR, to facilitate compliance by open-end and closed-end creditors and to lessen the financial impact to consumers by providing examples of replacement indices that meet Reg. Z requirements. Comments are due by August 4, 2020.
  • Two proposed rules concerning possible amendments to the qualified mortgage provisions of Reg. Z. One of these proposed rules would amend the definition of general qualified mortgages (QMs) to remove the current 43 percent debt-to-income requirement and to instead establish a pricing threshold, for loans to qualify as QMs. General QM loans would still have to meet the statutory criteria for QM status, including restrictions related to loan features, up-front costs, and underwriting. Comment are due within the 60 days of publication in the Federal Register, which has not occurred yet. The second proposed rule would extend the expiration date for a temporary exemption to this category of QMs for a short period, until the effective date of the proposed alternative or until either Fannie Mae or Freddie Mac, or both, exit conservatorship, whichever comes first. Comments are due 30 days after publication in the Federal Register, which has not occurred yet.
  • A proposed rule to implement section 108 of the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 (EGRRCPA), which requires the CFPB to conduct a rulemaking to exempt certain loans from the escrow requirements applicable to higher-priced mortgage loans if they are made by certain creditors with assets of $10 billion or less and that meet other criteria. That proposal was released on July 2 and can be found here. Comments are due 30 days after publication in the Federal Registration, which has not occurred yet.
  • In the fall of 2020, the CFPB plans to propose two new rules under HMDA. One of these proposed rules follows up on a May 2019 advance notice of proposed rulemaking concerning certain data points that are reported under the 2015 HMDA rule and coverage of certain business or commercial purpose loans. The second addresses the public disclosure of HMDA data, in light of consumer privacy interests.

SFH Guaranteed Loan Program URLA/ULAD Implementation Timeline
The USDA Section 502 Single Family Housing Guaranteed Loan Program is building a new Guaranteed Underwriting System user interface to support the new Uniform Residential Loan Application and Uniform Loan Application Dataset and to modernize the GUS. This will be accomplished in multiple functionality releases beginning with the March 1, 2021, URLA mandatory implementation date. USDA has developed a timeline for the implementation of the URLA and testing timeframes. Review the timeline.

To remove yourself from this mailing, click here.