President's Message

President's Message

2009-10 IMA President
Kathy Klahn

Is everyone thinking spring yet? Let's hope lending areas have a great year in helping people become homeowners. There is so much fear out there somewhat due to the media, but to own your own home is still a wonderful dream come true. Rates are still low as well as the tax incentives available on offers made through April 30, 2010 and closed by the end of June.

Are you all surviving RESPA? I believe it is still a work in process, as I know we are learning different opinions from HUD, our regulators and auditors. There is too much grey area in the revised regulation, so let's hope it all gets straightened out in the next couple of months.

Just a couple reminders of upcoming events:

Building Loan Originator Champions is Wednesday, March 24, 2010 at Park Place Event Centre in Cedar Falls. This is a tremendous event with a nationally-known speaker. The cost is only $75 per person. I encourage you to share the information with your loan originator peers as well as local Realtors in your area. We are expecting a great turnout!

Also, don't forget to register for the IMA Spring Conference to be held at the Marriott in Coralville, Thursday, April 8, 2010. It is jam packed with great speakers and terrific break out sessions. You won't want to miss this one!

Have a great spring everyone and I look forward to seeing you at upcoming IMA events!

Sincerely,

Kathy Klahn
2009-10 IMA President

2010 IMA Spring Conference: On Board for Success

2010 IMA Spring Conference: On Board for Success
 

2010 IMA Spring Conference April 8, 2010 - Coralville Marriott

The Iowa Mortgage Association is dedicated to helping mortgage professionals. IMA has discovered that the key to success is working together. By providing opportunities for education, networking and industry awareness we raise the level of everyone in the industry. With the current public perception of the mortgage industry and stresses in our industry it is vital that we stand as one, working together for the future of the industry. By working together we will have a successful future. IMA is proud to present the 2010 Spring Conference: "On Board for Success." IMA has designed a full-day of educational opportunities. With sessions on reaching your potential, industry updates and an inspirational message, the Spring Conference will provide you with what you need to reach the summit as a mortgage professional!

With sessions on being an effective originator, industry updates and an inspirational message, the Spring Conference will provide you with what you need to thrive as a mortgage professional! Take this opportunity to network with your peers from around the state, sharing ideas and solutions. As always the Spring Conference will also feature an exhibit hall with the latest products and services for the mortgage industry. Your peers, industry vendors, educational speakers and informative sessions will help you be successful in the mortgage industry. We look forward to seeing you at the conference and know you will discover ideas that will foster professionalism and success in your business!

Registration is available on the IMA website at www.iowama.org/calendar.cfm.

Building Loan Originator Champions

Building Loan Originator Champions
Wednesday, March 24
Park Place Event Centre, Cedar Falls

Bill Hart, a coach for Building Champions, will present this IMA seminar. Bill has enjoyed a dynamic 20 year sales and consulting career highlighted by the development of long-term relationships and high profile visibility in the real estate and mortgage industries, primarily in the areas of sales and marketing, public presentations and strategic partnering.

FIXING THE LEAKY BUCKET - The Best Strategies and Systems That are Working in Today's Market

• Bill will discuss his observations on what key strategies, systems and non-negotiable disciplines are making the difference in this market.
• Beginning the morning with a focus on Mortgage Professionals and REALTORS capitalizing together on "THE PERFECT STORM" - Rates, Tax Credits & Property Values - There may have never been a better time to buy!
• From Marketing this critical message NOW, to co-marketing for a synergistic WIN - this time with Bill will leave you energized, focused and ready to attack the 1-3 things that will have the biggest impact on your business, tomorrow.

Register today at the low price of $75! For more information on attending seminar, see IMA website at www.iowama.org. Questions? Call IMA at 800-800-2353.

Find friends & colleagues with the IMA!

Find friends & colleagues with the IMA!

Iowa Mortgage Association Networking Reception
March 24, 2010
4:00 to 6:00 p.m.
Park Place Event Centre
1521 Technology Parkway - Cedar Falls

The networking reception is free for all to attend. Join IMA for Hors d'Oeuvres and time to network with peers. The reception follows IMA's Building Loan Originator Champions Seminar. For more information on attending seminar, see the IMA website at www.iowama.org. Questions? Call IMA at 800-800-2353.

Iowa mortgage professionals see value in IMA Membership

Iowa mortgage professionals see value in IMA Membership

The Iowa Mortgage Association (IMA) prides itself on being a positive resource for Iowans in the mortgage lending industry as well as their affiliate partners. IMA members receive ongoing support and tools to enhance their careers as mortgage professionals. Members like Christy Allison (Cherry Creek Mortgage Co. in Bettendorf) feel that the resources available make IMA membership very worthwhile. "I have access to the current information and changes happening in the mortgage industry. The training classes and networking opportunities are very helpful in my business," said Allison, who served as 2009 IMA President and now serves on the IMA Board as Immediate Past President.

Christy Allison

"The IMA has a wonderful website that has many different benefits with regards to marketing. The website also lists upcoming education events along with the awards that we can qualify for each year based on production," she said.

Allison was so pleased with the IMA that she suggested starting another chapter in the Quad Cities.

"A co-worker had introduced me to the Iowa Mortgage Association and I was impressed with everything about the organization so much so that I suggested starting a chapter in the Quad Cities. We now have an IMA-QC Chapter on the eastern side of Iowa," she said.

"The QC Chapter is promoting IMA members in our area, and I think this is really helping to get in front of consumers and our business partners in being portrayed as a true mortgage professional -- not just someone in the business to make a quick buck!" she said.

IMA member Deb Sullivan (Valley Bank, Davenport) who serves as IMA Vice President also sees value in her IMA membership. "There are many educational opportunities for participating in training and networking events to further my career, which are offered at a lower cost for members. There are possibilities for networking as well as creating great relationships with other IMA members," Sullivan said.

Deb Sullivan

Allison believes members should encourage others to join the IMA as well.

"More and more of our IMA members should be promoting membership in the IMA to their own business partners. Many members may not know that the IMA is open to our affiliate partners such as our attorneys, appraisers, title companies, home inspectors, etc. Those vendors should also have the opportunity to network with our members and promote their services and perhaps save us all money in these trying times," Allison said.

The Association has also developed a designation program to recognize mortgage professionals who have attained the highest levels of industry expertise. The Iowa Certified Mortgage Professional Designation Program (ICMP)allows mortgage professionals to demonstrate their knowledge and ability through a series of testing. The designation, which is given only to those with the highest level of expertise, tells others they are dealing with a recognized expert in the mortgage industry. Allison says her ICMP designation has been an enormous asset.

"The ICMP designation has been a huge part of my personal marketing campaign," she said. " I am one of 16 individuals with this designation in the State of Iowa, and that goes a long way with my customers and business partners. I have actually been able to promote this information and sway the borrower's decision on using me over one of my competitors for their mortgage planning."

Both Allison and Sullivan highly recommend IMA membership for everyone.

"Do it! How can you lose?" Allison said. "With the numerous networking and education opportunities, you are just investing in your own business and personal growth."

USDA Rural Development SFHGLP funding will likely be exhausted by end of April

USDA Rural Development: SFHGLP funding will likely be exhausted by end of April

USDA Rural Development: SFHGLP funding will likely be exhausted by end of April

In a notice to lenders this week, USDA Rural Development announced that program funding for the Single Family Housing Guaranteed Loan Program will likely be exhausted by the end of April - and unlike past years, the Agency will not issue Conditional Commitments "subject to receipt of appropriated funds" once funding is exhausted.

In the notice send to lenders on March 10, USDA said limited funding may become available for disaster areas declared in 2008, or in disaster areas declared for Hurricanes Katrina and Rita. Limited funding may also become available as prior Agency commitments are de-obligated; however, such funding will be very limited, the agency said.

Heather Honkomp, Housing Program Director for USDA Rural Development in Iowa, said it is very unusual for the national office to shut down the program. Although funding is usually exhausted by August or September of the fiscal year (which runs Oct. 1 to Sept. 30), Honkamp said that is when the agency issues Conditional Commitments subject to available funding.

"Normally they allow us to issue Conditional Commitments subject to [receipt of appropriated funds]," Honkomp said. "It is very unusual for them to shut us down."

During the last 18 months, the program has gained momentum across the nation. As more funds have been allocated to the program - and with additional funding available through the American Recovery and Reinvestment Act - Honkomp said "a lot of new lenders came on and business picked up speed." In fact, demand nationwide reached all-time highs.

As a result of the increased demand nationwide, USDA's allocation of regular program funds was doubled from $6.2 billion in FY 2009 to $12.4 billion in FY 2010. In addition, $1.1 billion in Recovery Act funds remained in FY 2010.

Honkomp said the program has also gained momentum in Iowa, due to the fact that lenders liked the program and the agency had access to record levels of funds thanks to the Recovery Act and special Disaster relief funds.

The total guaranteed dollars accessed and spent in Iowa in FY 2009 included $62 million in Recovery Act funds, $94 million in Disaster funds and $71 million in regular funds - for a total of $227 million. USDA notes that Iowa's actual allocation of regular programs dollars was $50 million in FY 2009; however, the state has been able to reach its levels of production using pooled funds that other states did not use.

But increased funding in FY 2010 has not been enough to meet demand nationwide or in Iowa, as lenders continued to utilize the program at high levels during the first few months of the fiscal year. Honkomp noted that the agency has already surpassed a normal year in Iowa. "As of last week, we were spending per week what we were normally spending in a month," she said.

In just the first five months of FY 2010, USDA's Iowa office had spent a total of $101 million. This included $88 million in regular funds -- which has already surpassed the $71 million in regular funds spent in FY 2009 -- in addition to $12 million in Recovery Act funds.

Though USDA's national office continues to work toward getting additional appropriations, Honkomp said the agency doesn't want to give lenders false hopes.

"It's frustrating because we feel the lenders pain on this," she said. "There is no doubt that we have been able to accomplish our mission of serving rural communities, but to stop and start a program is very frustrating because we realize we lose a huge trust level with our customer (the lender) and the realtors and anybody else in the industry, and that trust factor makes all the difference."

In the notice to lenders, USDA apologized for any inconvenience the announcement may cause.

"I sincerely hope we have given the news to the lenders soon enough that we don't cause any hardships out there," Honkomp said.

Questions about the program may be directed to the Single Family Housing Guaranteed Loan Division at (202) 720-1452. IMA members who have questions about the program can also stop by the USDA Rural Development booth at the IMA Annual Conference in April. Learn more about Iowa's Single Family Housing Guarantee Loan Program online at http://www.rurdev.usda.gov/ia/rhsguar.html.

Reminder: Deadline for Homebuyers Tax Credit is April 30

Reminder: Deadline for Homebuyers Tax Credit is April 30

Through the Worker, Homeownership and Business Assistance Act of 2009, homebuyers who have owned their current homes for at least five years could be eligible for tax credits of up to $6,500. First-time homebuyers (that is, a buyer who hasn’t owned a home in the last three years) could still qualify for up to $8,000. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return.

An IRS video describes (available in English and Spanish) provides an overview of the tax credit. Click here for additional information from the IRS.

Existing home sales in Iowa recover

Existing home sales in Iowa recover

There was a recovery in the existing home sales market in Iowa, the Midwest and the country in 2009, according to statistics from the National Association of Realtors.

The total number of existing single-family homes, apartments, condominiums and co-ops sold in Iowa increased to 58,000 in 2009 from a total of 55,700 in 2008. That was a 4.1 percent increase from 2008, a year that saw a 21 percent decrease from the 70,500 sales in 2007. Click here to view the full report.

Following a drop of 10 percent in the first quarter of 2009, the seasonally adjusted annual rates in the last three quarters all showed growth over the preceding quarter. The adjusted annual rate peaked at 66,800 in the fourth quarter.

The 2009 existing home sales was the first increase since 2005. Since figures were first compiled in 1987, the lowest point in existing home sales was 48,000 in 1997. That, however, was followed by the largest increase in that span of 17.7 percent, to 56,500 in 1998. 2008 had the worst decrease, 21 percent.

The Midwest reported 1.17 million existing home sales, up 3.2 percent over 2008's total of 1.13 million, and the United States reported 5.16 million, up 4.9 percent from 2008's total of 4.91 million.

The yearly average median sales price of existing single-family homes in Des Moines decreased to $149,300 in 2009 from $153,200 in 2008. In the Midwest, the yearly average dropped to $142,500 in 2009 from $150,500 in 2008. For the nation, the yearly average dropped to $173,200 in 2009 from $196,600 in 2008.

Treasury Secretary: Reform of Government's Housing Role Needed

Treasury Secretary Reform of Government's Housing Role Needed

Treasury Secretary Timothy Geithner reiterated at a House Appropriations subcommittee hearing on Wednesday, March 10 that the administration will not develop a comprehensive plan to overhaul Fannie Mae and Freddie Mac until next year. However, the Treasury Department will release a set of broad objectives and principles to start a discussion on the issue at a House Financial Services Committee hearing slated for March 23, Geithner said. He added that the agency also will issue a list of strategic questions for public comment to help guide the development of a more detailed plan. The scope of the administration's Fannie-Freddie overhaul also is likely to be expanded to cover other agencies that have a role in housing, Geithner explained.

FHA Commissioner testifies before House subcomittee

FHA Commissioner testifies before House subcomittee

As the Federal Housing Administration (FHA) faces pressure to raise its down payment criteria, Commissioner David H. Stevens testified before a House subcommittee on March 11, defending the agency's plans to rebuild its capital reserves without increasing required down payments for all borrowers. In testimony before the House Financial Services Subcommittee on Housing and Community Opportunity, Stevens argued that FHA's loan volume would have dropped by 40 percent in the next fiscal year -- and that 300,000 first-time home buyers would have lost access to the housing market -- if the agency would have required a larger down payment.

Borrowers who take out loans backed by the FHA are permitted to put down as little as 3.5 percent. FHA critics argue that requiring more cash from borrowers upfront would make it less attractive for them to default on their loans. In recent years, the agency's cash reserves have dwindled as defaults have climbed, sparking some concerns that taxpayers may ultimately have to come to FHA's rescue. Last year, Rep. Scott Garrett (R-N.J.) introduced legislation that would have required FHA borrowers to put down at least 5 percent.

In his testimony, Stevens said that increasing required down payments for all borrowers would have "significant negative impacts on the broader housing market — potentially forestalling the recovery of the housing market and potentially leading to a double-dip in housing prices by significantly curtailing demand."

Instead, Stevens defended the FHA's plan to increase the up-front premium for most borrowers by 50 basis points, to 225 basis points of the loan amount, and asked Congress to grant the authority to raise a separate annual premium. The hike to the up-front premium will take effect in April. In his testimony, Stevens said that the FHA would lower this premium to 100 basis points once the agency gained the power to raise annual premiums.

In January, the FHA released a plan to tighten its underwriting standards. Under the proposal, FHA would require at least a 10 percent down payment from borrowers with credit scores of less than 580 and those with scores below 500 would be ineligible for FHA insurance.

Established in 1934, the FHA was designed to promote stability in the housing market by insuring fixed-rate mortgages for qualifying applicants. Commissioner Stevens is responsible for oversight and administration of the $600 billion FHA insurance portfolio. Click here to read his full remarks at the March 11 hearing.

U.S. foreclosure activity decreases 2 percent in February

U.S. foreclosure activity decreases 2 percent in February

U.S. mortgage foreclosure filings dropped for a second straight month in February, and notched the smallest annual increase in four years as housing-rescue efforts contained activity, a RealtyTrac report released on March 11showed. Foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 308,524 U.S. properties during the month, a decrease of 2 percent from the previous month but still 6 percent above the level reported in February 2009. The report also shows one in every 418 U.S. housing units received a foreclosure filing in February.

Foreclosures are by far one of the biggest threats to the U.S. housing market, which remains highly vulnerable to setbacks and heavily reliant on government intervention. If foreclosures keep dropping, it will be one of the strongest signals yet the market is on the path to recovery.

Click here to read the RealtyTrac report.

USDA Rural Development accepting Guaranteed Loan Applications to rehabilitate, build apartments

USDA Rural Development accepting Guaranteed Loan Applications to rehabilitate, build apartments

Applications are being accepted to provide affordable rental housing to rural residents through the Guaranteed Rural Rental Housing Program administered by USDA Rural Development. Loan guarantees in this program can help rehabilitate or build new apartment buildings in rural communities. Official notice of funds availability was published in the February 26th Federal Register available online at http://edocket.access.gpo.gov/2010/pdf/2010-3959.pdf.

Up to $129 million is available for this nationwide program for fiscal year 2010. Applications will be accepted through Dec. 31, 2010, or as long as funds remain available.

New and rehabilitated apartment complexes must be located in communities with fewer than 20,000 people to be eligible. When repairing facilities, costs must be at least $6,500 per unit. Eligible costs include building materials, as well as professional service fees, bond fees, developer's fees, land acquisition and development and financing costs.

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.

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