IMA Prime Times: August 2020 Iowa Mortgage Association

August 2020

What a Year ...
2020 has been the year of craziness ... did you know that Iowa could have a hurricane? A Derecho? What the heck is that? We have learned so much in 2020 from the ongoing coronavirus to murder hornets, to a good old Iowa hurricane. Makes you wonder what could be next.

This is kind of like our current mortgage situation. Rates continue to decline from already historic lows just a few months ago, and many of us feel overworked. If you are in management or a loan officer in production, please take the time to think of your support staff. Many support staff continue to work long hours to get these deals completed. Buy a lunch, send some flowers but, most importantly, thank them each and every day. Every person in this mortgage wheel is just as important as the other. Think of everyone as spokes on a wagon wheel. If one of the spokes disappears, you and your institutions' production disappear as well.

Personally, this has been a stressful two months for me. I helped my oldest son purchase his first home. Everyone in this industry needs to do this. As a lender myself, I was able to define the places that my institution shines and also where I needed to be better in helping my customer through things. You definitely see things from a different viewpoint. It is really odd having one son out of the house.

This weekend, my middle child will be off to college as a freshman at the University of South Dakota. He has future plans of being an orthopedic surgeon. This is my alma mater, but I told my son to not bring that up. I'm not sure what stories he might hear — good or bad. This will be son #2 out of the house in less than a month.

I do have a third son still at home and entering the eighth grade. It just seems so quiet around here.

Lastly and, most importantly, I need to mention the IMA Fall Conference. This will obviously be done remotely through Zoom, and I really hope to see you all there. There will be one fee per organization, and from that fee, anyone in your organization can log in and watch. You have probably seen emails from Darcy on this, but if not you can register here. We will have great speakers every day. Please make sure to get signed up and continue to support the Iowa Mortgage Association.

I hope this letter finds you all healthy. Please remember to keep your distance, wash your hands and consider wearing a mask when in public. Thanks!

Scott Brekke
Great Southern Bank

Register Now for 2020 IMA Fall Live
The Iowa Mortgage Association’s 2020 IMA Fall Live virtual event will take place 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.

New HMDA FAQ on Data Point Reporting
The Consumer Financial Protection Bureau released two new HMDA FAQs. The first question asks if certain data points — credit score, debt-to-income ratio and combined loan-to-value ratio — should be reported when those data are not dispositive factors in the credit decision. The second question asks if income and property value are factors in the credit decision but not dispositive factors, should the data points be reported.  

The correct answer to both questions is YES, these data points must be if they were a factor relied on in making a credit decision — even if the data point was not the dispositive or deciding factor. For purposes of Reg. C, it does not matter whether the application is approved or denied. If certain data was relied on in making a credit decision, it must be reported unless the reporter qualifies for the partial exemption for low volume reporters, in which case credit score, DTI, CLTV and property value should be reported using the proper exemption code. Income must be reported even if the reporter does qualify for the low volume partial exemption.

Additional Loan Accommodations Related to COVID-19
The Federal Financial Institutions Examination Council issued a statement to provide prudent risk management and consumer protection principles for financial institutions to consider while working with borrowers as loans near the end of the initial loan accommodation periods provided during the COVID-19 pandemic. 

The guidance encourages financial institutions to consider prudent accommodation options that can ease cash flow pressures on affected borrowers, improve their capacity to service debt, and facilitate institutions’ ability to collect loans, consistent with applicable laws and regulations. Effective risk management includes providing clear, conspicuous and accurate communications and disclosures to inform borrowers of affordable and sustainable accommodation options prior to the end of the accommodation period. The guidance also advises internal controls for initial and additional accommodation periods include quality assurance, credit risk review, operational risk management, compliance risk management, and internal audit functions that are commensurate with the size, complexity and risk of a financial institution’s activities. Read the statement.

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