President's Message

President's Message

Christy Allison

News about the current state of the mortgage industry can be unsettling for those of us who make our living in this business. Almost everywhere you turn there are stories about the difficulties some mortgage companies, banks, and brokers are facing in the current economic environment.

Although the industry turmoil may continue for some time, for many of us it's "business as usual" in Iowa. The Iowa Mortgage Association is here to assist you in meeting your buyers' home loan needs. Check out the IMA website (www.iowama.org) and visit the Benefits section. We offer a wide range of marketing tools and products to assist with getting more qualified buyers in your door. Perhaps some of these tools will help you close more loans in these trying times.

And remember, as an IMA member, it is your responsibility to educate yourself on the many loan product changes in the marketplace right now. This year our Education Committee is trying to stay abreast of the many regulation changes. Discussions are happening at the committee level to provide timely seminars at numerous locations throughout Iowa. Also, it may be the right time to secure your Iowa Certified Mortgage Professional (ICMP) designation. It's just another way to become known as the leading home loan expert for your part of the state.

I know that many of our members are dedicated professionals; you are often the leaders in our industry. We all look forward to the opportunity to provide stability in these uncertain times and be an advocate for our loyal business partners and clients. The best advice I can give for these crazy times is to keep a positive attitude and do what you are good at to the best of your ability. It will be rewarded and appreciated!

Christy Allison
2008-09 IMA President
Christy.Allison@countrywide.com
(319) 314-3333

Business Planning Seminar

Business Planning Seminar
November 4, 2008 - 8:30 a.m. - Noon
Johnston, IA
This new half-day seminar from the Iowa Mortgage Association will provide you with the tools you need to manage your business and manage your time.

Agenda:

• How to schedule "Dollar-Generating" tasks
• What is the REAL value of your time?
• How to balance your business, family & personal time
• How to color-code your activities
• Simplified business planning strategies
• How to write your personal business plan
• Steps needed to implement your plan
• How to monitor your progress

Registration: IMA Members $95; Nonmembers $145. Registration fee includes continental breakfast, instruction and all handouts. Click here to register online.

FDIC Simplifies Coverage Rules for Mortgage Servicing Accounts

FDIC Simplifies Coverage Rules for Mortgage Servicing Accounts

On Friday Oct. 10, the FDIC Board of Directors adopted an interim final rule, effective immediately, to simplify the deposit insurance rules for accounts held at FDIC-insured institutions by mortgage servicers.

Under the FDIC's current rules, accounts maintained by a mortgage servicer comprised of principal and interest payments made by borrowers are insured based on the ownership interest of each lender (or investor) in those accounts. Over the past several years, securitization methods and vehicles for mortgages have become more layered and complex. Thus, it has become much more difficult and time-consuming for a servicer to identify and determine the share of any investor in a securitization and in the principal and interest funds on deposit at an insured depository institution.

Under the interim rule, coverage will be provided to the lenders/investors, as a collective group, based on the cumulative amount of the borrowers' payments of principal and interest into the account. Because servicers are able to identify borrowers more quickly than investors, the per-borrower coverage provided for under the interim rule would enable the FDIC to make deposit insurance determinations on mortgage servicing accounts more quickly and to pay deposit insurance more quickly. This insurance coverage afforded in connection with principal and interest payments in mortgage servicing accounts would not be aggregated with or otherwise affect the coverage provided to borrowers in connection with other accounts the borrowers might maintain at the same insured depository institution.

"This simplification of the coverage rules for mortgage servicing accounts will help prevent losses to otherwise insured depositors and prevent withdrawals of deposits for principal and interest payments from depository institutions," said FDIC Chairman Sheila C. Bair. "Thus, we believe the new rule will benefit both mortgage security-holders and insured institutions."

The interim rule is effective as of Oct. 10, 2008, for all existing and future mortgage servicing accounts. The FDIC will publish the interim rule with a comment period of 60 days.

Home Valuation Code of Conduct requires new appraisal standards

Home Valuation Code of Conduct requires new appraisal standards

In recent weeks, Iowa banks have had questions regarding changes to the appraisal rules that would require banks to have a code of conduct or prohibit a bank from using an internal appraiser. While the appraisal rules have not changed, the Office of Federal Housing Enterprise Oversight (OFHEO), the New York State Attorney General Andrew Cuomo, Fannie Mae and Freddie Mac (the Enterprises) have entered into an agreement to strengthen the independence of the appraisal process. The agreements include a Home Valuation Code of Conduct that the Enterprises will apply to lenders selling mortgages to Fannie Mae or Freddie Mac. The Code becomes effective on January 1, 2009.

Freddie and Fannie have adopted this same Home Valuation Code of Conduct for all loans sold to them. The Home Valuation Code is not applicable to loans which an institution carries within its own portfolio (in-house loans). Click here to read the Code. This is a program change to loans sold to Freddie and Fannie and not a rules change of the regulatory rules regarding appraisals. Click here to read the notice sent by Fannie Mae to all its single family mortgage sellers.

The Code reinforces and assures appraiser independence by prohibiting anyone involved in the loan process to coerce or influence an appraised value, forbidding any person who would earn a commission or is a member of the loan production staff from ordering the appraisal or communicating with the appraiser and also forbids the use of appraisals prepared by an appraiser who is employed by the lender, an affiliate or subsidiary of the lenders. Banks that sell loans to secondary market investors, such as Iowa Bankers Mortgage Corporation, will need to abide by the Code.

Iowa Bankers Association Compliance Staff have received questions regarding the term “loan production staff” and whether it references the lending institution or the loan originator or officer. The IBA has determined that "loan production staff" includes loan originators as well as those involved in the loan approval process and their subordinates. See the inter-agency regulatory guidance below issued in 2005:

3. Who should be considered the loan production staff for purposes of achieving appraiser independence? Could loan production staff select an appraiser?

Answer: The loan production staff consists of those responsible for generating loan volume or approving loans, as well as their subordinates. This would include any employee whose compensation is based on loan volume. Employees responsible for the credit administration function or credit risk management are not considered loan production staff.

Loan production staff should not select appraisers. However, in a small or rural institution or branch, the only individual qualified to analyze the real estate collateral may also be a loan officer, other officer, or director of the institution. To ensure their independence, such lending officials, officers, and directors should abstain from any vote or approval involving loans for which they engaged the appraiser, reviewed the appraisal, or performed an evaluation.

The entire Q&A guidance document on appropriate appraisal standards can be found at: http://www.fdic.gov/news/news/financial/2005/fil2005a.html.

30 Business Building Tips!

30 Business Building Tips!
By Gwen Buehler, Marketing Manager at In Touch Today

Below you will find 30 business building tips to implement during the next 30 days. Each day, commit to accomplishing one tip - and at the end of the 30 days you should be well on your way to more business success than you've ever imagined! Track your results and watch how your business changes. Most important, keep up with the tips which have been most impactful, even after the 30 days are up!

1. Get Happy! First things first. Are you happy and excited about what you do? If not, you probably don't want to bother with the rest of these tips because having a good attitude is ingredient number one. You MUST believe in what you do to succeed. Think of three things that will make you happy right now (within reason) and do them.
2. Dial some Digits. Make one phone call to a referral partner today. Ask them how they are doing, how their business is doing, and if there is anything you can do for them right now. For extra credit, call more than one.
3. Happy Birthday! Select 10 of your best clients and send them birthday cards. This can easily be done by signing them up on a Birthday Greeting Card Campaign.
4. A Good Deed. Offer to do an errand for one of your referral source partners. Free up a bit of their time.
5. Practice Handwriting. Choose five of your best clients and send them a hand written greeting card simply saying hello. Bonus: include a $5.00 Starbucks gift card just to remind them how special they are to you and your business.
6. Grab Your Reading Glasses. Spend 20 minutes per day reading news related to your industry. You will learn something new each day from it for sure.
7. Get Out, Learn and Network. Sign up for a seminar or class relating to your industry. Doing this will a. give you new ideas, b. allow you to meet new people and network and c. give you a change of scenery from your day to day.
8. Make More Friends. Call 10 new people you have met and have a brief conversation with them. By the end of the conversation, you should be adding them to your database with information that will help you help them in the future.
9. Inspire Yourself: Take some time to think about the things that make you want to be better in life. It could be your kids, your family, success in your career, or your pets. Thinking of these inspirational things will push you to keep getting better in everything you do.
10. Chit Chat. Contact (via email or personal phone call) 10 of your best clients and ask them this question: "What is the main thing you want from a (insert your profession or title here)?" Bonus: Take it a step further to ask them what you could do to better their experience the next time they work with you.
11. Split Up Your Time. Make a conscious effort to spend 5% of your time working ON your business instead of IN your business. This could be as simple as choosing one business building book per month and promising to complete it. Recommendation for this month: Rain Making: The Professional's Guide to Attracting New Clients by Ford Harding.
12. Put on Your Apron. Since RESPA puts limitations on how you can thank your referral sources, get back to baking! Bake a few dozen cookies and freeze them in batches. Each time you get a referral, send your partner a plate of homemade cookies and a Thank You for Your Referral Greeting Card.
13. Your Report is Due. Take some recent newspaper articles or negative media and discuss it in an email or even letter. Write about what it means to your clients as consumers, staying positive, and point out things they need to watch out for. They will appreciate the additional insight, and your positive attitude.
14. List Your Favorite Things: It never hurts to remember what some of your favorite things are. You can even make separate lists. Make a list of your favorite things outside of work like your favorite foods, your favorite movies, etc. Then make a list of your favorite things about what you do for a living. Remind yourself why it is that you do what you do - and why you are good at it.
15. Be The Teacher. Host an Educational Presentation in your community or neighborhood. Whether it is for First Time Homebuyers, or Understanding Your Credit Score, people need and want to learn. Bonus: Partner up with your favorite professional referral source for double the attendees.
16. Give Back. Organize or sponsor a charitable event in your community. It could be as easy as picking up trash at local parks or offering a free car wash to locals. This is a great way to get people out and meeting you - and you are benefiting the community while gaining exposure.
17. Get Your Duster. Clean out your desk. Get rid of anything old that doesn't work or that you simply don't use anymore. A clean desk will help you think clearer.
18. Spread The Word. Compile a list of people who you know that don't currently own a home. Proceed to contact them via email or direct mail with reasons why now is the best time to buy, and see if you can answer any questions for them. Send them a free Educational Brochure about the topic too.
19. Keep it or Shred it. Tackle your filing cabinet and get rid of all unnecessary files or papers that are cluttering your space. Do this both at your office and at home. Here is a helpful link to help you figure out what to keep and what to pitch. http://www.bankrate.com/brm/news/mtg/20000518h.asp
20. A Fresh New Look. If you can, reinvent your look a little. Get a new haircut or color. Get a new suit or outfit. You don't need to replace your entire wardrobe, just choose one thing about yourself and change it. When you feel good, it shines through in your personality, which is after all a big reason why people choose to work with you.
21. Tell Me Something... Email your entire database and ask them to reply back to you with one thing that you don't know about them. Tell them you are reaching out and getting to know your clients better and want to know something unique about them.
22. A Special Note. Take some time and write a special note on the back of all the business cards you give out. Something as simple as 'I can't wait to hear from you" will do. Bonus: Add a sticker or colorful smiley face on there too!
23. Stretch Your Limit: Make a commitment to do something COMPLETELY out of the ordinary for yourself. It could be something drastic like going bungee jumping, or it can be as simple as attending a cooking class that you have been thinking about taking. Do something out of the ordinary - you never know who you will meet along the way.
24. Quotes for Success. Search and find a list of inspirational or motivational quotes that are meaningful to you. Then share them via email with your employees to boost morale, and to your clients to boost their spirits. Everyone needs a little inspiration these days.
25. Write it Down. Keep a journal of your experiences, dreams, goals and ideas. It is easy to forget what our goals are and great ideas that come into our minds. Start recording them each day. After a while, you can look back and get new ideas, or gain motivation from past experiences and lessons learned.
26. Move Things Around. The typical work day is eight hours. Do you love your office and all that surrounds you? If not, change it right away. Fill it with things that make you happy, and remind you of your goals and intentions.
27. Be a Mentor. You can become a leader or mentor easier than you think. Surely there are professionals you have come in contact with recently that are just starting out and could use some good advice. You may not think so, but you have a lot to offer. Sharing it with someone fresh in the business will allow your ideas to be revisited as well as get new ideas from the person you are mentoring.
28. Post a Note. Keep a supply of eye-catching postcards on hand and write a message on five each day. Choose five people from your database and send them your postcard. Remember, this is for no reason whatsoever - just a simple hello.
29. Star Treatment. How would you treat a famous celebrity if they walked into your office today? You would probably drop what you are doing and immediately approach them with a smile on your face, willing to do whatever it takes to make them happy. You should be treating each person that walks into your office this very same way - including your mail delivery person and UPS professional. Everyone should be treated like a star - strive to do this each day.
30. Reward Yourself: Each day make a point to reward yourself for your hard work. For example, keep a pile of your favorite treat (like jelly beans, peanuts, M&M's) and each time you complete a task, enjoy one of your treats.

In Touch Today is a marketing company based in Denver Colorado that assists professionals in increasing their repeat and referral business as well as building professional referral sources and prospecting new clients. www.intouchtoday.com/IMA

HUD Update

HUD Update

HOPE FOR HOMEOWNERS To Help More Struggling Families Keep Their Homes
The HOPE for Homeowners program will refinance mortgages for borrowers who are having difficulty making their payments, but can afford a new loan insured by HUD’s Federal Housing Administration (FHA). Borrowers are encouraged to contact their lender to determine eligibility, but may be eligible if, among other factors:

• - Their home is their primary residence
• - Their existing mortgage was originated on or before January 1, 2008; and they have made six payments
• - They are not able to pay their existing mortgage without help
• - As of March 2009, their total monthly mortgage payments due were more than 31% of their gross monthly income
• - They certify they have not been convicted of fraud in the past 10 years, intentionally defaulted on debts, and did not knowingly or willingly provide material false information to obtain their existing mortgages.

IOWA FLOOD DISASTER FUNDING
Up-to-Date information on the Iowa Flood Disaster and information on funds coming into Iowa is available online at www.flood2008.iowa.gov. Check out www.hud.gov for information on all HUD/FHA programs.

Member Spotlight

Member Spotlight: Kevin Wosmansky

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