President's Message

David Horak

Greetings! It is mid-August already and conversations have changed from summer vacations to college football and kids going back to school. I think we are finally done talking about Brett Favre, at least I am. The summer has flown by, where did it go?

Our industry is still facing challenges, and it will take some time and a lot of effort to work through many of the issues. Our government has made an attempt to help stabilize the market and to help ensure that money is available to qualified borrowers. The challenge that we face on the street is educating borrowers and realtors on the changes in loan programs and underwriting guidelines. Adapting to these changes will take time. Some borrowers who would have previously qualified for a loan in the recent past may not be able to qualify today. Because of the many changes, it is important for loan officers to monitor their pipelines and pre-approvals to make sure their borrowers still meet the loan guidelines.

Over time, these changes will become less frequent and the guidelines more familiar. Until we get to that point, make sure you are checking investor and MI company websites for the most current underwriting guidelines. Fannie Mae has indicated that they will be producing a seller/servicer guide by the end of the year. This could indicate that Fannie might be at the end of their changes. Hopefully this is the case.

Keep an eye to the IMA website as well. We have several upcoming events including the fall conference in Des Moines beginning September 3. At the conference we will be welcoming Christy Allison as your new president along with our new board member Eric Schaub. At this time we will also be recognizing the two outgoing board members, Rhonda Kimble and Becki Rogers-Neese. Both have put countless hours of their time into the IMA. Thank you Becki and Rhonda for your dedication. Also available on our website is a link to the MBA website that will give you a heads up on what is going on legislatively at the national level. From the MBA site you can find a link to the new mortgage industry related bill signed by the president last month.

With the conference coming up next month and my term as your president rapidly coming to an end, I wanted to take a quick moment to say "thank you." I appreciate your support and dedication to the IMA. Despite the turmoil over the last 12 months in this industry, our association was able to accomplish a great deal towards becoming the voice of the mortgage industry in Iowa.

I look forward to your continued support to the IMA and to seeing you in September.

Your President,

David Horak

Catch the Next Wave in the Mortgage Industry with the IMA 54th Annual Convention!

Catch the Next Wave in the Mortgage Industry with the IMA 54th Annual Convention!

September 3-5, 2008 • Downtown Des Moines Marriott

Don’t miss this great event!

Look for IMA in the News!

Look for IMA in the News!

The Iowa Mortgage Association is advertising around the state of Iowa. In June, and coming up on Saturday, September 13 and December 6, the IMA will have ads appear in seven metro markets. The ads discuss the importance of financing a home and encourage borrowers to make sure their lender is a member of the Iowa Mortgage Association. The ad uses the tag line, “Dedicated to helping Iowans make sound homeownership decisions.” The ads are running in the Cedar Rapids Gazette, Quad City Times, Des Moines Register, Dubuque Telegraph Herald, Iowa City Press Citizen, Sioux City Journal and the Waterloo Courier.

Upcoming IMA Education Events

Upcoming IMA Education Events

USDA Guaranteed Loan Programs
October 21 - 9:00 a.m. - Noon

This new half-day seminar from the Iowa Mortgage Association will provide you with the information you need for the USDA, Rural Development Lending Programs.

Agenda:

• USDA, Rural Development
• Single Family Housing Guaranteed Loan Program
• Benefits
• Applicant Eligibility
• Property Eligibility
• Resources Available
• GUS, Guaranteed Underwriting System

To register for these events click here.

Federal government takes steps to address housing concerns

Federal government takes steps to address housing concerns

On July 26, President Bush signed the final omnibus housing bill (H.R. 3221) which combines regulatory reform of the government-sponsored enterprises, modernization of the Federal Housing Administration (FHA) and a program to help troubled borrowers.

The bill creates a new combined regulator for Fannie Mae, Freddie Mac and the Federal Home Loan Banks. The bill also includes Treasury’s proposal that would increase Fannie Mae and Freddie Mac’s line of credit with the department, allow Treasury to purchase equity in the companies if necessary and give the Federal Reserve the authority to consult with the new GSE regulator on setting capital standards for them. The legislation also:

• - allows the FHA to insure up to $300 billion in refinanced mortgages;
• - increases the size of loans Fannie and Freddie may buy in high-cost areas;
• - allocates $3.9 billion to let state and local governments buy and repair foreclosed properties;
• - provides $15 billion in housing tax breaks, including a credit of up to $7,500 for first-time homebuyers; and
• - offers up to $200 million for foreclosure-prevention programs.

We invite you to learn more about becoming an Iowa Certified Mortgage Professional and take this crucial step that tells others they are working with a recognized expert in the mortgage industry. For more information about the ICMP designation process or to download an application see the IMA website or call IMA's Darcy Burnett at 800-800-2343 with questions.

Mortgage Customers Receive Solicitations

Mortgage Customers Receive Solicitations

Iowa bankers are reporting yet another vendor using public records of recently recorded mortgages to solicit business from banks' borrowers.

The most recent solicitation describes the customer's recent property purchase, states a deed was prepared showing transfer of title to the purchaser(s) and filed with the county recorder's office in which the property is located. The solicitation further states, "The U.S. Government Federal Citizen Information Center website recommends that property owners should have an official or certified copy of their deed." The vendor offers to obtain and deliver a certified copy of the deed for a payment of $59.50.

This particular solicitation includes disclaimers that the vendor is not affiliated with any governmental agency, and that many government records are available free or at nominal cost from government agencies.

Customers receiving these solicitations should be reminded that the bank does not share its customers' mortgage information with nonaffiliated third parties, and information to make this solicitation was obtained directly by the vendor from public records. Also, customers should be reminded that there is no federal requirement for property owners to hold a certified copy of the deed to their property; it's merely a recommendation for appropriate household record keeping.

Customers concerned about solicitations of this nature may be directed to the Iowa Attorney General's Consumer Protection Division, phone 515-281-5164.

2008 Quad City IMA Chapter Charity Golf Fundraiser

2008 Quad City IMA Chapter Charity Golf Fundraiser
The 2008 Iowa Mortgage Association ( Q.C. Chapter ) Charity Golf Fundraiser was a huge success thanks to the sponsors, players, committee members and volunteers.

The event was ‘SOLD OUT’ prior to teeing off, and that has never been done before. This is a testimony to the Committee’s efforts and commitment to the event.

We just completed the last of three check presentations of $ 3,000 to each of this year's three charity recipients.

MBA president announces his departure and successor

MBA president announces his departure and successor

Jonathan L. Kempner, President and CEO of the Mortgage Bankers Association (MBA), has announced that he will be stepping down from that role on Dec. 31. Kempner was hired in March 2001 to lead MBA through a turnaround in its operations after three especially rough years. Under his leadership, the association doubled its revenues and operating reserve fund, while scoring a host of policy and advocacy victories.

Kempner has announced that MBA's leadership will name John A. Courson Chief Operating Officer during the transition period, effective Aug. 1. Courson will become President of MBA on Jan. 1, 2009.

"The MBA leadership made an excellent choice with John Courson taking over the reins," said Kempner. "Few members of the mortgage industry are more respected than John, as he brings to MBA a wealth of experience, both in terms of business knowledge, and political and advocacy skills."

Courson served as Chairman of MBA in 2003 and served as a member of MBA's Board of Directors, the Residential Board of Governors and the Commercial Real Estate/Multifamily Finance Board of Governors. He has served as President of the California Mortgage Bankers Association and Michigan Mortgage Bankers Association, and as a Director of the Texas Mortgage Bankers Association.

Courson began his career in mortgage banking working for Kassler & Co. in Denver, Colo., while attending high school and college. He has served as President and CEO of Central Pacific Mortgage Company, President and CEO of Westwood Mortgage Corporation and as President and COO of Fundamental Mortgage.

In 2004, Courson was appointed by Gov. Arnold Schwarzenegger and currently serves as Chairman of the Board of Directors of the California Housing Finance Agency.

Iowa is participating in National Mortgage Licensing System

Iowa is participating in National Mortgage Licensing System

Iowa is one of 14 states participating in the Nationwide Mortgage Licensing System, which was launched six months ago by the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR).

The Nationwide Mortgage Licensing System has been designed to streamline the licensing process, improve supervision and increase transparency in the mortgage industry. The NMLS will contain a single record for each state regulated mortgage lender, broker, branch and loan originator. This single record can be used to apply for, amend, renew or surrender licenses in any participating jurisdiction.

In the first six months of operation, the NMLS has processed 71,740 filings. The NMLS Call Center has fielded over 38,000 calls, and the NMLS Web site receives an average of 7,600 visits per week.

States are finding that approximately 75 - 80% of existing company licensees are transitioning onto NMLS. As of July 22nd, 6,112 companies, 4,648 branches and 22,868 loan officers have a record in NMLS

Along with the Iowa Division of Banking, other states currently participating on NMLS include:

• o Idaho Department of Finance
• o Kentucky Office of Financial Institutions
• o Massachusetts Division of Banks
• o Nebraska Department of Banking and Finance
• o New York State Banking Department
• o Rhode Island Department of Business Regulation
• o Connecticut Department of Banking
• o Louisiana Officer of Financial Institutions
• o Mississippi Department of Banking & Consumer Finance
• o New Hampshire State Banking Department
• o North Carolina Office of Commissioner of Banks
• o Vermont Department of Banking, Insurance, Securities, and Health Care Administrations
• o Washington Department of Financial Institutions

Click here for an overview of the NMLS.

Seller-assisted Loan Program to End Under Housing Bill

Seller-assisted Loan Program to End Under Housing Bill

A seller-financed down payment program for Federal Housing Administration (FHA) loans will end under the omnibus housing legislation signed by President Bush in July. Under the bill, the program will end Oct. 1.

Pressure from FHA Commissioner Brian Montgomery argued that the seller-assisted loan program has a foreclosure rate three times greater compared to borrowers who make their own down payments, which creates concerns for the FHA's mortgage insurance program. These seller-assisted loans account for one-third of the agency's portfolio.

"Iowa Mortgage Help" Will Aid Homeowners Struggling with Mortgage Payments

"Iowa Mortgage Help" Will Aid Homeowners Struggling with Mortgage Payments

Homeowners are encouraged to call the Iowa Mortgage Help hotline at 877.622.4866 or visit www.IowaMortgageHelp.com.

HUD announces $85 million in emergency funding for Iowans impacted by storms and flooding

HUD announces $85 million in emergency funding for Iowans impacted by storms and flooding
Recognizing the tremendous needs of Midwest states following recent natural disasters, U.S. Housing and Urban Development (HUD) has announced it will allocate $85 million to Iowa following the recent storms and flooding. The emergency funding is provided through HUD’s Community Development Block Grant (CDBG) Program. HUD will publish a notice shortly to provide guidance to assist in Iowa’s long-term recovery planning particularly as they relate to meeting the tremendous housing needs of Iowan citizens. Read more at: www.hud.gov/news/index.cfm

FHA to Provide Additional Mortgage Assistance to Struggling Homeowners

FHA to Provide Additional Mortgage Assistance to Struggling Homeowners

The President has signed into law legislation that will allow HUD's Federal Housing Administration (FHA) to continue providing targeted mortgage assistance to homeowners. The Hope for Homeowners Program will continue FHA's existing and successful efforts to provide aid to struggling families trapped in mortgages they currently cannot afford. Under the program, certain borrowers facing difficulty with their mortgage will be eligible to refinance into FHA-insured mortgages they can afford. The program will be implemented on October 1, 2008.

Homeowners May Already Be Eligible For Assistance: Check out www.hud.gov for information on the FHASecure program in existence now and the Hope for Homeowners Program to learn more about eligibility for homeowners facing foreclosure.

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