President's Message
Time to Start Thinking About Goals for 2023
The end is near! This time of the year always signals a lot of ends in our near future. The Iowa State Fair means that summer break is over and school will be starting soon. School starting back up means that fall is just around the corner. And before we know it, we will already be in the last quarter of the year. That means it is already time to start thinking about goals for 2023. I know it seems a bit early but if you think about it, you can expect it to take two to three months on average from when a new idea or strategy is implemented before you will start to see the payoff. That means that what we all reap over the last few months of 2022 are the result of the work we have already put in.

Now is the perfect time to reflect on what has worked for you over the past year and what needs to be tweaked. We are in a much different market than we have seen in recent years and simply showing up will no longer cut it. No matter what role you have within your organization, now is the time to enhance your knowledge and sharpen your skills to make sure that you don’t just survive but thrive in a tougher lending environment.
 
There are some important industry events coming up that could help you and your team learn new strategies to stand out. The Housing Iowa Conference is Sept. 7-9 at the Iowa Events Center. Shortly after that is the IMA Fall Conference Oct. 18-19 at the West Des Moines Marriott. Both events will have tremendous speakers and opportunities to network with industry leaders and peers. While we all navigate the slowdown, investing in yourself or your employees will pay off tenfold.
 
The final end that I hope is near is the volatility we all experienced the first six months of this year. I am hopeful we will see slower movement on rates (both up and down) so that our clients can have more confidence that now is still a great time to be in the market. Rents are rising faster than mortgage rates so the more people we can get in front of to show the benefits of homeownership, the better it is for all of us. That is much easier to do in a period of stability.
 
Wishing all of you a strong end to 2022!

Chuck Simmons
Motto Mortgage
Association Updates
Fall Conference a Great Opportunity
The Iowa Mortgage Association Fall Conference will be Oct. 18-19 at the West Des Moines Marriott. Attendees will have the opportunity to network with peers, explore products and services available in the exhibit hall and gain perspective from educational speakers. With sessions on goal setting, mortgage compliance, sharpening sales skills, housing programs and more, this is a great opportunity to learn, meet your peers, and recharge. With rising interest rates creating many changes in the market, this is your chance to learn new skills and get a refresher on attracting and retaining business.
Fall Conference Kicks Off With Golf Outing
The IMA Fall Conference officially kicks off with a golf outing Oct. 17 at Legacy Golf Course in Norwalk. This four-person best ball event is a great chance to visit with peers in a casual setting out on the course. The event starts with a shotgun start at 10:45 a.m. with a reception and prizes to conclude the day.
Mortgage Pro Award Nominations Due Friday
The Iowa Mortgage Association will award the Mortgage Professional of the Year and Affiliate of the Year Awards at the 2022 IMA Fall Conference on Oct. 18. The awards recognize a distinguished mortgage professional from a financial institution and an outstanding associate member/affiliate partner. The deadline to submit nominations is Aug. 19. Learn more.
Industry News
Register Now for HousingIowa Conference
The Iowa Finance Authority will host the 2022 HousingIowa Conference Sept. 7-9 at the Iowa Events Center in Des Moines. The conference will feature four-time Olympian Chaunte’ Lowe, who will speak about her journey from homelessness to becoming an Olympic athlete. The event will also feature updates on Iowa’s economic forecast, the latest in the housing market, innovation in housing development and much more. The annual event will feature a vast number of sessions covering timely topics in all realms of housing in Iowa, including homeownership, housing development, leadership, Iowa Title Guaranty, rental and homelessness in addition to the HousingIowa Awards and networking opportunities. Learn more or register.
GSEs Issue Update on Equifax Coding Issue
Fannie Mae and Freddie Mac updated lenders regarding an Equifax coding issue that may have resulted in errors to consumer credit scores and data reported between March 17 and April 6, 2022. Based on its assessment, the government-sponsored enterprises have determined that the errors to underlying credit report data as a result of the incident are not considered to be material erroneous credit data errors. Accordingly, lenders are not required to obtain an updated credit report and re-underwrite the loan by resubmitting the loan to Desktop Underwriter, or to reassess the underwriting decisions for non-DU loans, based solely on the issue. The GSEs further confirmed that the inaccurate credit score used at the time of underwriting does not render the loan ineligible for purchase and that a repurchase request will not be issued based solely on this issue.
CFPB Issues Advisory on Consumer Reports
The Consumer Financial Protection Bureau issued an advisory opinion related to the Fair Credit Reporting Act’s provisions regarding companies that use and share consumer reports. While much of the document focuses on the responsibilities of consumer reporting agencies, it also addresses responsibilities of users of consumer reports, including mortgage lenders and banks. Specifically, the advisory opinion noted that consumer report users must ensure they do not violate a person’s privacy by obtaining or using a report without a permissible purpose. The advisory provides an example of a company initiating credit reports for the wrong consumer by incorrectly inputting consumer information into the application system or by selecting the wrong consumer from a list of possible consumers identified in the system. The CFPB cautioned that a user who incorrectly inputs consumer information when obtaining a report can result in that user obtaining a report without a “permissible purpose”, thus violating the FCRA and also violating the consumer’s privacy rights.
Redlining Settlement With Mortgage Bank
The Department of Justice and Consumer Financial Protection Bureau reached a settlement in a redlining case against an independent mortgage bank. The allegations involve accusations that the lender failed to provide mortgage lending services to majority-minority neighborhoods due to its marketing, sales and hiring actions.

Specifically, the lender's actions discouraged prospective applicants from applying for mortgage and refinance loans in the greater Philadelphia area's majority-minority neighborhoods. The evidence of redlining was presented via an analysis of branch locations, marketing plans, statistical peer comparisons and employee statements. There was evidence that offices were concentrated in majority-white neighborhoods, most of their loan officers were white and were not assigned to solicit applications in majority-minority neighborhoods, inflammatory and racist internal communications by employees, and that they targeted advertisements toward white neighborhoods. The CFPB also noted Home Mortgage Disclosure Act and other lending data reflected that the lender underperformed peer institutions in generating home applications and making loans in majority-minority neighborhoods in Philadelphia.

The proposed order, if entered by the court, would require the lender to pay $18.4 million into a loan subsidy program; a $4 million fine that will be used for the CFPB’s victims’ relief fund; and an additional $2 million for advertising to generate applications in redlined areas as well as to take other steps to serve the credit needs of majority-minority neighborhoods in the Philadelphia area. Read more here.
Published by Iowa Mortgage Association.