A Message From IMA President Tim Lamb
Association Updates
IMA to Present 2 Awards to at Fall Conference
The Iowa Mortgage Association will present the Mortgage Professional of the Year and Affiliate of the Year Awards at the 2021 IMA Fall Conference Oct. 12. The awards will recognize a distinguished mortgage professional from a financial institution and an outstanding associate member/affiliate partner. Nominees symbolize excellence in the following categories:
  • Represents themselves, their company and the industry with the highest standards of ethics and excellence.
  • Demonstrates a continued commitment to community involvement.
  • Has made a significant contribution to the mortgage industry.
  • Is a member in good standing of the Iowa Mortgage Association.

Nominations are due Aug. 11.
IMA Will Again Recognize Top Mortgage Producers
Members of the Iowa Mortgage Association's 2020 Winner’s Circle and President’s Club will be honored at the IMA Fall Conference on Oct. 12. An ongoing recognition program, the club will consist of mortgage originators who meet certain criteria set from year to year. This year, the IMA will recognize all eligible produces and eight additional awards will be given to recognize top lenders. The top five mortgage lenders by purchase volume will be recognized, and the IMA will also present awards to top lenders by total volume, recognizing one person from a bank, credit union and independent mortgage company. Entries must be received by Sept. 9.
Industry News
Iowa Tax Bill Includes Several Housing Initiatives
After three extra weeks past the scheduled adjournment date, the Iowa Legislative Session adjourned May 19. The 2021 General Assembly passed a tax and economic development package (SF 619) that included several housing initiatives supported by the IMA in the closing hours. Some key elements of the legislation include:
  • Expansion of money into the Housing Trust Fund each year from $3 million to $7 million. 
  • Increase in the workforce housing tax credit program from $25 million to $40 million for fiscal year 2022 and $35 million thereafter. It also allocates $17.5 million to the small city set-aside portion of the program beginning in fiscal year 2023 to improve housing stock in more rural parts of Iowa. 
  • Creation of a disaster recovery housing program. 
  • Elimination of the 2018 revenue growth triggers, which will ensure the full implementation of the 2018 tax legislation beginning in tax year 2023. 
  • Phase out and elimination of nonlineal descendent inheritance tax over four years. 
  • Phase out of the county mental health property tax levy, shifting funding responsibility for mental health services from counties to the state. This is an estimated $100 million property tax reduction.
  • Provides guidance for a Downtown Loan Guarantee Program. Under the program, the Iowa Economic Development Authority would guarantee loans meeting the following eligibility requirements: The loan finances an existing downtown resources center, community catalyst building, remediation project or an existing Main Street Iowa challenge grant project. It is used for rehab, acquisition or refinancing costs associated with the project. Twenty-five percent of the project cost is for construction or renovation. It includes a housing component. The loan is made by a federally insured financial institution. It does not reimburse the borrower for working capital or operations. It must also meet certain design reviews. The guarantee is up to 50% of a loan amount up to $500,000. For loans greater than $500,000, the IEDA can guarantee up to $250,000. Money for the program will be applied for through the U.S. Treasury Department's State Small Business Credit Initiative.  

Another highlight of the session was passage of HF 848 that expands broadband access. One of the governor’s initiatives, it was unanimously approved with bipartisan support and dedicates $100 million to improve Iowans' access to high-speed broadband service especially in rural areas of the state.
Legislature Passes Mortgage Banker Bill
This year, the Iowa Legislature passed SF 567, which relates to loans originated by mortgage bankers licensed or registered under Iowa law and was supported by the IMA. Specifically, the legislation treats qualified mortgage loans in which the points and fees charged do not exceed the amounts specified under federal law, as an exemption from Iowa code section 535.8, subsection 4, paragraphs a, b and d, as well as subsection 5. The exemption already applies to Iowa banks and credit unions and extends the exemption to qualifying nondepository mortgage bankers that make “federally qualified mortgages.” The bill passed the Legislature with no controversy but the Iowa State Bar Association is now asking the governor to veto the legislation. The Bar believes the bill allows mortgage bankers to pass on the cost of title insurance to the consumer. The Bar has a long history of opposing title insurance in favor of Iowa Title Guaranty.
TRID FAQ Updated
The Consumer Financial Protection Bureau has released updated information for lenders addressing housing assistance loans under the TILA-RESPA integrated disclosure rule. The CFPB added several new questions to its TRID FAQs regarding housing assistance loans, and how the Building Up Independent Lives and Dreams Act affects the TRID rule requirements for certain housing assistance loans. Read the new FAQ.
Fannie and Freddie Clarify Loan Eligibility
Fannie Mae and Freddie Mac issued additional guidance in late May related to loan eligibility for applications submitted on or after July 1, 2021, under the Preferred Stock Purchase Agreement and revised General Qualified Mortgage rule. The guidance confirms the GSEs will only acquire loans that meet the revised QM loan definition or meet other requirements for loans not covered by the QM rule, and provides updates to the Selling Guides that align with the revised General QM rule.

Lenders can begin applying these policies immediately but must apply them to all loans with application dates on or after July 1, 2021. GSE Patch loans that do not meet the Revised QM Rule must have application dates on or before Jun. 30, 2021, and be purchased or securitized on or before Aug. 31, 2021.

Note: There is an exception for single-closing construction-to-permanent loans with application dates prior to July 1, 2021, that meet the QM Patch (and do not meet Revised QM). These loans can be purchased or securitized on or before Feb. 28, 2022.
CFPB Issues Escrow Account FAQ
The Consumer Financial Protection Bureau released a set of 23 frequently asked questions that provide an overview of the escrow account provisions under Regulation X. The FAQs address a variety of topics including general escrow matters such as key definitions, account analysis, deficiencies, shortages, surpluses, HUD’s public guidance documents and more. Read the FAQs.
Published by Iowa Mortgage Association