IMA Prime Times: November 2020 Iowa Mortgage Association

November 2019

Lamb Looks Back at 2020, Poses Questions for IMA Members
Click on the image below to hear a message from IMA President Tim Lamb of Collins Community Credit Union in Cedar Rapids.

Join In — Renew Your IMA Membership — Watch Your Email
As the new year approaches, it’s time to renew your Iowa Mortgage Association membership. By addressing current issues in government relations, public relations, professional development and more, the IMA connects the mortgage community through education and resources to promote homeownership. Please join the IMA for another successful year by renewing your membership today. Through membership in the IMA, you will receive:
  • Monthly updates through IMA Prime Times.
  • Discounts on program registration fees on all IMA programs including the Annual Convention and Spring Conference.
  • Legislative efforts to strengthen the industry.
  • Industry information and association updates via the IMA website.
Membership renewals will be sent via email to the IMA main contact in early December. Renew your membership online.

CFPB Finalizes GSE QM 'Patch' Extension
On Oct. 20, 2020, the Consumer Financial Protection Bureau issued a final rule amending the Ability-to-Repay/Qualified Mortgage Rule by extending the GSE QM Patch expiration which was set to expire in January 2021. The final rule removes the January 2021 sunset date and replaces that date with the date on which the CFPB amendments to the General QM definition become effective. In a separate rulemaking process, which has not been finalized yet, the CFPB has proposed to amend the definition of a General QM. It is important to note, while the final rule extends the sunset date for the Temporary GSE QM category, it does not amend the provision stating that the Temporary GSE QM loan category expires when the GSEs exit conservatorship. Thus, under the final rule, the Temporary GSE QM category will expire on the earlier of: (1) the mandatory compliance date of the final rule amending the General QM loan definition; or (2) the date that the GSEs exit conservatorship. The CFPB has provided an executive summary of the rule, which is effective Dec. 28, and can be found in the Oct. 26, 2020 Federal Register.

New RESPA Section 8 FAQ
The Consumer Financial Protection Bureau released a set of frequently asked questions that provide an overview of the provisions included in Section 8 of RESPA and its rules prohibiting referral fees in Regulation X. The FAQ focus on:
  • Gifts  The FAQs note that if a gift (“thing of value”) is given or accepted as part of an agreement or understanding for referral of business related to a real estate settlement service involving a federally related mortgage loan then it is prohibited under Section 8. The FAQs emphasize that the agreement or understanding need not be in writing or oral and can be established by a practice, pattern or course of conduct.
  • Promotional activities  The FAQs state that promotional or educational activities connected to a referral source would be allowed under Regulation X if the activities (1) are not conditioned on referral of business; and (2) do not involve defraying expenses that otherwise would be incurred by the referral source. The FAQs describe these conditions in more detail and provide example of activities that meet and do not meet Regulation X’s conditions.
  • Marketing Services Agreements (MSA)  The FAQs emphasize that MSAs that involve payments for referrals are prohibited, whereas MSAs that involve payments for marketing services may be permitted, depending on certain facts and circumstances. The CFPB also rescinded a 2015 compliance bulletin on RESPA compliance and MSAs upon issuance of these FAQ.
HMDA Reference Chart Updated
The Consumer Financial Protection Bureau has published a new Home Mortgage Disclosure Act reporting reference chart creditors can use as a reference for the data points that are required to be collected under Regulation C in 2021. Download the updated chart.

NMLS Renewal Period Ends Dec. 31
The Nationwide Mortgage Licensing System and Registry’s 2020 renewal period ends Dec 31. All Mortgage Loan Originators, 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 each year. Information regarding the NMLS registration renewal process is available here.

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