A Message From IMA President Tim Lamb
Association Updates
Still Time to Register for IMA Fall Conference
The Iowa Mortgage Association Fall Conference will return Oct. 12-13 at Prairie Meadows Event Center in Altoona. Attendees will have the opportunity to network with peers, explore products and services available in the exhibit hall, and gain perspective from educational speakers. Sessions include noted mortgage speaker Doug Smith sharing insights about the new world of mortgage lending and how to be a top producer. Other sessions include the popular mortgage compliance session with Ronette Schlatter and a program on developing grit from Cindra Kamphoff, high-performance consultant for business leaders, entrepreneurs and professional athletes. The event will kick off with a fall golf outing Oct. 11 at Copper Creek Golf Course in Pleasant Hill.

Note: Per CDC guidelines, Prairie Meadows will require all guests and employees to wear a face covering effective Aug. 1. View Prairie Meadows' health and safety guidelines.
Industry News
CFPB Issues Juneteenth Interpretive Rule
The Consumer Financial Protection Bureau released an interpretive rule to assist in determining whether to treat June 19, 2021, as a federal holiday or a business day for purposes of compliance with certain time-sensitive borrower protections. The rule was effective upon publication in the Aug. 12 Federal Register, however the CFPB clarified that the interpretive rule has retroactive application, offering that the interpretation applies to “the legal requirements that were applicable around the time of the Juneteenth holiday in June 2021.”

Regulation Z establishes timing requirements, calculated in business days, for when borrowers must receive certain disclosures (including the TRID Loan Estimate and Closing Disclosure) and when borrowers have the right to cancel some mortgages. Because the Juneteenth National Independence Day Act was signed into law two days before the newly created holiday on June 19, many participants in the mortgage industry reported being unsure of how to treat the day for purposes of regulatory compliance for loans in process.

The CFPB clarified in this Interpretive Rule, for rescission of closed-end mortgages and the TRID disclosures, whether June 19, 2021, counts as a business day or federal holiday depends on when the relevant time period began. If the relevant time period began:
  • On or before June 17, 2021, then June 19 was a business day.
  • After June 17, 2021, then June 19 was a federal holiday.
CFPB Proposes Small Biz Data Collection Rule
The Consumer Financial Protection Bureau issued its long-awaited and much anticipated notice of proposed rulemaking to implement Section 1071 of the Dodd-Frank Act. Section 1071 amended the ECOA (as implemented by Regulation B) to require financial institutions to collect and report certain data in connection with credit applications made by women- or minority-owned businesses and small businesses. Comments on the NPRM will be due no later than 90 days after the date it is published in the Federal Register.

The CFPB’s proposal is 918 pages long and offers a relatively short comment period of 90 days. Section 1071 requires financial institutions to collect and report information regarding applications for business “credit.” In the NPRM, the CFPB is proposing to define a “covered credit transaction” broadly as a credit transaction that meets the definition of business credit under Regulation B. Thus the proposal would within its scope, owner-occupied, dwelling secured loans made to small businesses (including sole proprietors and formal and informal partnerships). The full text of the NPRM was accompanied by a summary prepared by the CFPB. 
Published by Iowa Mortgage Association