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| Iowa Mortgage Association - Prime Times Jun 15, 2009 In this issue: President's Message IMA 2009-2010 Membership Directory Advertising IMA Iowa Certified Mortgage Professional Designation HUD Announces Plan Allowing First-time Homebuyers to 'Monetize' $8,000 Tax Credit Revised Early TIL Disclosure Rules Effective July 30, 2009 Mortgage Loan Originator Registration Rules Proposed Guidance on Mortgage Fraud SAR Filings Possible Delay to January RESPA Revisions Use Revised Flood Determination Form by June 16 Home Modification Loan Program Details Rolled Out Freddie Mac Issues Guide Bulletin 2009-13 on Home Affordable Modification Program Federal Home Loan Bank of Des Moines Announces $300,000 in Funding to New Homebuyers in Iowa Interest Credit Available to Help Rehabilitate and Build Apartment Buildings in Disaster Counties ICMP Member Spotlight: Tammy D. Walton President's Message President's Message: June 2009  Christy Allison As summer approaches, June gives us an opportunity to reflect on the natural disasters that devastated many parts of Iowa one year ago. Our hearts and prayers go out to the IMA members who were impacted by the storms and flooding. As the rebuilding process continues, the IMA celebrates the continued recovery taking place in cities like Cedar Rapids, Coralville, Parkersburg, Waterloo and Waverly, along with the many the other cities and towns that were affected. June is also the time to celebrate National Homeownership Month. There are currently many opportunities available to help homebuyers achieve the dream of homeownership. As you already know, the American Recovery and Reinvestment Act of 2009 offers homebuyers a tax credit of up to $8,000 for purchasing their first home. The program is available for homebuyers who have not owned a principal residence within the last three years. The tax credit is available on purchases from Jan. 1, 2009, and before Dec. 1, 2009. The amount of the tax credit is equal to 10 percent of the home purchase price, up to $8,000. Click here to learn more about the tax credit.Originally, families could only access this credit after filing their tax returns with the IRS; however, at the end of May, the Federal Housing Administration (FHA) announced that it will allow homebuyers to apply the new $8,000 first-time homebuyer tax credit toward the purchase costs of an FHA-insured home. Though limited details are available at this time, you can learn more about the FHA announcement below in this issue of Prime Times.This news comes at a time when we should all continue to be aware of the issues that consumers may face during tough economic times. Remember that Iowa Mortgage Help is a safe and free mortgage counseling resource for Iowans who are struggling with their mortgage payments. Many homeowners are seeking help in the form of loan modifications or mortgage rescues, which puts them in danger of becoming victims of related scams. A recent Financial Crimes Enforcement Network (FinCEN) advisory highlights some of the common loan modification/foreclosure rescue scams. Read more about the advisory in this month's Prime Times, along with a wide range of regulatory issues that continue to impact our industry. And don't forget to check out the IMA's Event Calendar to learn more about upcoming IMA events!Christy Allison, ICMP IMA 2009-2010 Membership Directory Advertising IMA 2009-2010 Membership Directory Advertising
IMA Iowa Certified Mortgage Professional Designation IMA Iowa Certified Mortgage Professional Designation Ready to achieve a new level of professional growth and recognition? The Iowa Certified Mortgage Professional Designation (ICMP) program is designed to elevate professional standards, enhance individual performance, and designate association professionals who demonstrate the knowledge essential to the mortgage industry. Getting the ICMP isn't simply a one time thing, but an ongoing commitment to professional growth. Professionals holding the designation pledge to continually advance their knowledge and achieve higher levels of excellence in the industry. The Iowa Mortgage Association encourages you to learn more about becoming an ICMP. 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.Current ICMP Designees The Iowa Mortgage Association would like to congratulation the mortgage professionals who have obtained the IMA's Iowa Certified Mortgage Professional Designation. These individuals have attained the highest levels of industry expertise.
HUD Announces Plan Allowing First-time Homebuyers to 'Monetize' $8,000 Tax Credit HUD Announces Plan Allowing First-time Homebuyers to 'Monetize' $8,000 Tax Credit  The American Recovery and Reinvestment Act of 2009 offers qualifying homebuyers a tax credit of up to $8,000 for purchasing their first home. Qualifying taxpayers who buy a home before Dec. 1, 2009, can claim the credit on either their 2008 or 2009 tax returns. The new tax credit does not have to be paid back unless the home ceases to be the taxpayer's main residence within a three-year period following the purchase. Homebuyers can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately. Previously, home buyers were able to use the funds from the tax credit only after filing their federal tax returns. On May 29th, the U.S. Department of Housing and Urban Development (HUD) announced that the Federal Housing Administration (FHA) will allow homebuyers to immediately apply the $8,000 first-time homebuyer tax credit toward the purchase costs of an FHA-insured home.Under the terms of this new program, lenders will be able to "monetize" tax credits for use as additional down payment, or for other closing costs. Click here to read the FHA's new mortgagee letter. HUD announced that FHA-approved lenders may purchase the tax credit from the home buyer in advance so that the home buyer can use the funds for closing costs or to make a down payment in addition to the 3.5 percent minimum. Home buyers who go directly to an FHA-approved lender will still need to come up with the 3.5 percent minimum down payment required for an FHA-insured loan.The FHA announcement also detailed rules allowing state Housing Finance Agencies and certain non-profits to monetize up to the full amount of the tax credit (depending on the amount of the mortgage) so that borrowers can immediately apply the funds toward their down payments. While some state Housing Finance Agencies have launched programs to "monetize" the tax credit, Iowa Finance Authority (IFA) Director of Single Family Production Irene Hardisty said IFA already has three down payment assistance programs, including one which is a grant that does not have to be repaid. IFA says it is not going to be creating a new down payment assistance program to advance the tax credit; however, Hardisty said IFA encourages borrowers to talk to lenders to find other sources available that would allow borrowers to immediately apply the tax credit toward their home purchase. Eligible borrowers who do not "monetize" the tax credit are still able to receive the tax credit quickly. According to the IRS, first-time homebuyers who purchase a home before Dec. 1, 2009, still have the option to claim the tax credit on a 2008 tax return by filing an amended return. The IRS says that for some taxpayers, it may make more financial sense to wait and claim the homebuyer credit next year when they file the 2009 tax return. Basic information on the first-time homebuyer credit is available from the Internal Revenue Service (IRS). Complete information on how the first time homebuyer tax credit works, including the eligibility requirements for the tax credit, the amount of the tax credit that a first-time homebuyer may be eligible to receive, and how a homebuyer may claim the tax credit is available on the IRS website at http://www.irs.gov/newsroom/article/0,,id=204671,00.html?portlet7.Resources for more information: Revised Early TIL Disclosure Rules Effective July 30, 2009 Revised Early TIL Disclosure Rules Effective July 30, 2009By Ronette Schlatter, CRCM Senior Compliance Coordinator, Iowa Bankers Association On May 14th the Federal Reserve Board approved the final revisions to Regulation Z to implement the Mortgage Disclosure Improvement Act (MDIA). The MDIA was the result of two 2008 Congressional actions: the Housing and Economic Recovery Act passed on July 30, 2008 and later, the MDIA was further amended by Congress in October 2008 with the enactment of the Emergency Economic Stabilization Act of 2008. The final revisions to Regulation Z resulting from the MDIA can be found online at http://edocket.access.gpo.gov/2009/pdf/E9-11567.pdf.The revisions to Regulation Z dramatically increase the scope of coverage of loans for which an early Truth-in-Lending (TIL) disclosure must be provided, expand the timing requirements for delivery of the early TIL, impose fee limitations, require redisclosure of the early TIL in certain circumstances and add an additional Fed Box disclosure requirement. If your institution has not started preparing for these changes, time is of the essence as the revisions are effective for all applications received on or after July 30, 2009 — less than 60 short days away. Click here to read the complete article.This article was originally published in the Iowa Bankers Association's June 2009 issue of The Disclosure magazine. Mortgage Loan Originator Registration Rules Proposed Mortgage Loan Originator Registration Rules ProposedBy Ronette Schlatter, CRCM Senior Compliance Coordinator, Iowa Bankers Association The Office of Thrift Supervision (OTS), Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Farm Credit Administration (the Agencies) have jointly issued and are requesting public comment on a notice of proposed rulemaking entitled Registration of Mortgage Loan Originators (NPRM). The NPRM implements the SAFE Act provisions requiring employees of federally-regulated institutions who engage in the business of a “mortgage loan originator” to register with their federal regulator.
The NPRM defines a “mortgage loan originator” as an individual who takes a residential mortgage loan application and offers or negotiates terms of a residential mortgage loan for compensation or gain. The term does not include an individual who performs purely administrative or clerical tasks on behalf of an individual who is a mortgage loan originator. The NPRM requires employees to submit information regarding his or her identity, contact information, employment history, criminal history and more. In addition, employees must provide fingerprints, in digital form if practicable, to the Registry for submission to the Federal Bureau of Investigation. Under the NPRM institutions must make a unique identifier of its registered mortgage loan originators available to consumers in a manner and method practical to the institution. The goal of the unique identifier is to enable consumer to access information related to their mortgage loan originator on the Registry. Financial institutions must also have written policies and procedures in place for confirming the accuracy and adequacy of their employees’ registrations. The proposal provides for a 180-day period within which to complete the initial registration process after the Registry is capable of accepting registrations from employees of Agency-regulated institutions. While the Agencies intend to publish a joint final rule establishing a system of federal registration by July 29, 2009, they do not anticipate the web-based Registry systems will be able to accept registrations from employees of Agency-regulated institutions at that time. Thus, the reason for a delay in implementation of the registration requirements until 180 days after the Registry becomes operational and available for initial federal registrations. Mortgage loan originators who are not employees of Agency-regulated institutions are required by the SAFE Act to become licensed by the State in which they operate. Information related to licensing requirements can be obtained from the Iowa Division of Banking. The NPRM can be found in the June 9, 2009 Federal Register at http://edocket.access.gpo.gov/2009/pdf/E9-13058.pdf.Comments are due on or before July 9, 2009. About the author: Guidance on Mortgage Fraud SAR Filings Guidance on Mortgage Fraud SAR FilingsThe Financial Crimes Enforcement Network (FinCEN) has issued an advisory to highlight loan modification/foreclosure rescue scams so that financial institutions may better assist law enforcement when filing Suspicious Activity Reports. The activities of financial institutions may intersect with loan modification/foreclosure rescue scams in two ways. First, persons or entities perpetrating loan modification/foreclosure rescue scams may seek the services of financial institutions for the purpose of receiving, depositing or moving funds relating to the scams. Second, financial institutions may become aware of such scams through their interactions with customers who have become victims. The FinCEN guidance provided a number of examples of information received from a customer or otherwise that may indicate the presence of a foreclosure rescue scam including, but not limited to:
In many circumstances, the homeowner is a victim of the scam and therefore should not be listed as a suspect unless there is reason to believe the homeowner knowingly participated in the fraudulent activity. When the homeowner is simply a victim of a scam, including all available information in the narrative portion of the Suspicious Activity Report about the homeowner and his or her property will also assist law enforcement in investigating these potential crimes. FinCEN will continue to monitor Suspicious Activity Reports that identify mortgage loan fraud and specifically loan modification/foreclosure rescue scams in order to provide future analysis and ways to mitigate losses to financial institutions and consumers. FinCEN will issue further advisories on this issue as appropriate. Financial institutions that have questions or comments regarding the contents of this Advisory should contact FinCEN’s Regulatory Helpline at 800-949-2732. The mortgage fraud SAR guidance can be found on FinCEN’s web site at http://www.fincen.gov/statutes_regs/guidance/html/fin-2009-a001.html.Possible Delay to January RESPA Revisions Possible Delay to January RESPA RevisionsA bill previously admitted to the House of Representatives, the Mortgage Reform and Anti-Predatory Lending Act (H.R. 1728), has been amended to include language impacting the new RESPA revisions slated to become effective on January 1, 2010. The amendment to H.R. 1728 requires HUD to suspend the new revisions (the new GFE and HUD-1) and instead work with the Federal Reserve Board to propose a joint rule under TILA and RESPA. At the time of this publication, the H.R. 1728 has been approved by the House of Representatives. It is important to note that at this time there is NO suspension of the new GFE and HUD-1. A number of things need to occur before this bill becomes a law, including approval by the Senate, a resolution of any differences between the House bill and the Senate bill and finally, President Obama would need to sign the bill into law. If H.R. 1728 should become law, the RESPA reform debate will not be over. H.R. 1728 requires HUD and the Federal Reserve Board to work together to propose new joint regulations to reform RESPA within 12 months. Thus, the entire regulatory rule-making process would start all over. Use Revised Flood Determination Form by June 16 Use Revised Flood Determination Form by June 16Lenders are reminded FEMA’s Form 81-93, Standard Flood Hazard Determination Form (SFHDF) expired on Oct. 31, 2008, and was replaced by FEMA Form 81-93, Standard Flood Hazard Determination Form (SFHDF) with a Dec. 31, 2011, expiration date. FEMA did not mandate use of the revised form immediately. Rather, to allow users of the form time to update their systems to the new version, FEMA postponed the effective date for mandatory use of the new form until June 16, 2009. Lenders who have not started using the revised form yet, are reminded SFHDFs completed on or after June 16, 2009, must be completed using the new form with a Dec. 31, 2011, expiration date for compliance purposes. The Standard Flood Hazard Determination Form and instruction can be found on FEMA’s web site at http://www.fema.gov/business/nfip/sfhdform.shtm.Home Modification Loan Program Details Rolled Out Home Modification Loan Program Details Rolled OutFannie Mae has established a web site that provides servicers with the additional information and tools they’ll need to participate in Treasury’s Home Affordable Modification Program (HMP). The materials set forth implementation guides for mortgage loans that are not owned or guaranteed by Fannie Mae or Freddie Mac. The web site provides, in comprehensive fashion, all guidelines needed to comply with the program, as well as registration information required to participate in the HMP. The HMP issuances by Fannie Mae, the designated financial agent for the US Department of Treasury, include the following: The Servicer Participation Agreement (and Commitment To Purchase Financial Instruments). A net present value (NPV) model, designed to illustrate an NPV model that meets the specifications set forth under the HMP. The new HMP information is located at www.hmpadmin.com.Freddie Mac Issues Guide Bulletin 2009-13 on Home Affordable Modification Program Freddie Mac Issues Guide Bulletin 2009-13 on Home Affordable Modification ProgramOn May 26th, Freddie Mac announced changes to the Home Affordable Modification Program (HAMP) and Servicing requirements, including the following changes:
Federal Home Loan Bank of Des Moines Announces $300,000 in Funding to New Homebuyers in Iowa Federal Home Loan Bank of Des Moines Announces $300,000 in Funding to New Homebuyers in Iowa  Bank Iowa, Altoona; BankIowa, Cedar Rapids; Northwest Bank, Spencer; Iowa State Bank, Des Moines; Ascentra Credit Union, Bettendorf; and Farmers and Merchants Savings Bank, Manchester will each receive $50,000 in UFT grants to provide housing assistance to their communities. FHLB Des Moines members are eligible to receive up to $50,000 in UFT grants to provide housing assistance in communities throughout the Bank's five-state district. In response to community housing and economic challenges, the Bank changed the 2009 Urban First-time Homebuyer Fund guidelines to address the issue of foreclosure. Eligible households will receive up to $10,000 to purchase a foreclosed property and all other households will receive up to $5,000 under the UFT program. "The grant reflects our focus on working with our members to change the futures of individuals and families in their community," said Gary Dodge, community investment director at FHLB Des Moines. Since the program's inception more than 820 grants totaling $4.3 million dollars have been awarded to support a wide range of housing activities. The grants can be used to provide down payment, closing cost, counseling or rehabilitation assistance to households purchasing owner-occupied units in urban communities. Eligible households are at or below 80 percent of the area median income. For more information about the Urban First-time Homebuyer Fund, please contact the Community Investment Department at 800.544.3452, ext. 1173 or visit the Bank's website at www.fhlbdm.com.The Federal Home Loan Bank of Des Moines is a wholesale cooperative bank that provides low-cost short and long-term funding and community lending to more than 1,200 members, including commercial banks, saving institutions, credit unions and insurance companies. The Bank is wholly owned by its members and receives no taxpayer funding. The Des Moines Bank serves Iowa, Minnesota, Missouri, North Dakota and South Dakota and is one of twelve regional Banks that make up the Federal Home Loan Bank System. Interest Credit Available to Help Rehabilitate and Build Apartment Buildings in Disaster Counties Interest Credit Available to Help Rehabilitate and Build Apartment Buildings in Iowa's Disaster Counties  USDA Rural Development is now accepting pre-applications for loan guarantees to help rehabilitate or build new apartment buildings in rural communities. Also, recently it was announced that interest credit is available through USDA Rural Development to assist with rehabilitation and building projects in any of Iowa's 78 counties that were included in the August 26, 2008 federal disaster declaration (FEMA-1763-DR). Official notice of funds availability was published in the January 21st Federal Register and can be reviewed at www.gpoaccess.gov/fr/advanced.html. The Notice of Funds Availability (NOFA) is expected soon.Approximately $11 million is available nationwide for this program. Applications will be accepted through September 28, 2009, or as long as funds remain available. For more information about any of USDA Rural Development's guaranteed loan programs, please call (515) 284-4666 or visit www.rurdev.usda.gov/ia.ICMP Member Spotlight: Tammy D. Walton ICMP Member Spotlight: Tammy D. Walton Each month the IMA's "Prime Times" newsletter features an IMA member who has achieved the Iowa Certified Mortgage Professional designation. This month's ICMP Member Spotlight features an interview with Tammy Walton (Iowa State Bank, Des Moines). Prime Times: What prompted you to pursue your Iowa Certified Mortgage Professional (ICMP) designation? Prime Times: How has the designation impacted your business? Prime Times: What mistakes do you think new loan originators typically make? Prime Times: How about the veteran loan originators? What mistakes do they make? Prime Times: What differentiates you and your company from other originators and companies? Prime Times: What is your most successful sales tool? Prime Times: Who or what was the biggest contributor to your success? Prime Times: What is your current mix of business and business sources? Prime Times: If you could change one thing about the mortgage business, what would that be? Prime Times: What other goals in your career would you like to accomplish? To remove yourself from this mailing list, click here. |
Tammy D. Walton |
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