President's Message
Don't Miss a Chance to Network With Colleagues
The connections we make in and out of the mortgage industry through networking is so important in our business. I learned early on in my career that who you know may be just as important as what you know when you’re trying to get the results you desire. The same can be true when working with co-workers, colleagues at other companies, referral partners or even current and past clients. Each interaction you experience engrains a bit of knowledge, connection and emotion in your life.

At my last conference, one of the speakers said something that was interesting to me. The session was on our mindset in this business. Happiness in business is a feeling that is generated from endorphins. The endorphins create a feeling of happiness but they lie to you, and the feeling you get from them eventually goes away because it is not true happiness.

He emphasized not only reflecting on why you do what you do in this wonderful business of mortgage but also focusing on how. How are you presenting yourself and showing up every day? How do you want to be remembered in the current day and into the future? What is your legacy you are striving to leave behind? Legacy is not just the wealth you leave to your children and grandchildren, but it is how you have affected people’s lives. What did you do to create a higher expectation that is now the new norm?

We are now less than one month away from the IMA Spring Conference, the numbers are slowly coming in. At last count, more than 150 have registered for the conference. Does that include you? If you have not taken the time to sign up, please do so. We would love to network with you!

Jen Coyle
First Branch Home Loans
Association Updates
Register Now for IMA Spring Conference
Mark the dates for the IMA's upcoming spring conference on April 4 in Coralville. This year’s event includes session on mortgage sales in a challenging environment, fintech and apps in the mortgage world, working through times of change, and more. The Spring Conference will also feature an exhibit hall and the popular mortgage production awards. Learn more.
Industry News
ALERT: Ask FHFA to Withdraw New LLPA
The Mortgage Bankers Association sent a letter to Sandra Thompson, director of the Federal Housing Finance Agency, to express concerns regarding the recently announced changes to the government-sponsored enterprises' loan-level price adjustments. The letter reiterates initial concerns about the unfortunate timing of the new fees, because the implementation date of May 1 comes at the peak of the spring homebuying season. The MBA also highlights major issues that could result from tying the newly added LLPA to a debt-to-income ratio. The new LLPA will likely mean multiple changes to a borrower’s pricing throughout the loan application process, which could cause operational and system issues, compliance implications related to TILA-RESPA Integrated Disclosures, compromised borrower trust, and challenges during post-closing quality control activities.

The MBA has provided a sample letter for members of the Iowa Mortgage Association to use to express similar concerns to the FHFA. The short text urges FHFA to withdraw the new LLPA, or at least delay implementation for 6 months so that MBA and the industry can work with FHFA to identify alternatives. The IMA encourages all members to send this letter directly to the FHFA.
CFPB: Some Comparison Platforms Violate RESPA
The Consumer Financial Protection Bureau issued an advisory opinion warning mortgage comparison shopping digital platforms and lenders who participate that they may be violating federal law if they direct shoppers to lenders or other real estate settlement service providers who pay referral fees to the platform. The Real Estate Settlement Procedures Act prohibits companies and individuals from steering shoppers to providers by using “pay-to-play tactics” rather than providing comprehensive and objective information.
 
The advisory opinion outlines 13 activities that violate RESPA. Illegal activities include presenting one or more lenders in a non-neutral way or biasing a platform’s internal formula to favor preferred providers. Also, if a platform operator receives a higher fee for including a provider compared to what it receives for including other providers, that can be evidence of an illegal referral fee arrangement absent other facts indicating that the payment is not for enhanced placement or another form of steering. The advisory became effective when published in the Feb. 13, 2023 Federal Register.
CFPB Updates Reportable HMDA Data Chart
The Consumer Financial Protection Bureau recently issued a chart, titled "Reportable HMDA Data: A Regulatory and Reporting Overview Reference Chart for HMDA Data Collected in 2023." The chart was updated from earlier versions to reflect the 2022 court decision that invalidated part of a 2020 final Home Mortgage Disclosure Act rule issued by the CFPB that increased the HMDA reporting threshold for closed-end mortgage loans from 25 covered loans originated in each of the prior two years to 100 covered loans originated in each of the prior two years. As a result of the court decision, the CFPB issued a technical rule reinstating the 25 closed-end loan threshold for the 2023 reporting year. The updates to the chart reflect that court decision.
Published by Iowa Mortgage Association.