Committee On Temporary Shelter (COTS)
The Committee On Temporary Shelter, (COTS) provides emergency shelter, services,
and housing for people who are without homes or who are marginally housed.
VMBA is pleased to support the NVBR in their sponsorship of the COTS Walk.
Show your support of the
community by joining REALTORS® as they walk to support COTS.
This year's COTS Walk will be held on
Sunday, May 3.
For more information contact:
Wells Fargo Home
SAVE THE DATE!
VMBA GOLF OPEN
Tuesday, June 9
9:00 Shotgun Start
BBQ Begins at 1:30
Showcasing our Mortgage
Mortgage Insurance Company
Republic Mortgage Insurance Company
Mortgage Guaranty Insurance Company
Thanks to our
Affiliate Members for your support.
Please Support those who Support us!
| All Member Employees are Welcome!
Vermont Legislative UpdateH-171, Licensed Lender - Making Progress, S-54, Senate version of the Energy Districts - amended
As of today, April 27, H-171, an amendment to Chapter 73, Licensed Lender law is working it's way though the Vermont Legislature. H-171 as it was originally introduced is posted on our Legislation page. This sweeping reform establishes many new standards for all who originate mortgage
loans as Licensed Lenders or Brokers.
While this specifically impacts these two groups, as the implementation of the SAFE Act requirements, the new Regulation should be of great interest to all mortgage originators in the
S-54, the Senate version of H-161, allows towns to incur debt to finance energy conservation projects, and if the homeowner wishes to participate, and "qualifies" for the debt service, the town may assess the property to pay for the project. The original bill was amended and the lien upon foreclosure would no longer be a priority lien.
We will work with BISHCA to bring you training on any new VT laws and regulations as a result of this legislative year, as well as critical training to prepare Licensed Lender and Broker originators for the Vermont originator test that will be required next year.
If you are looking for information on any specific issue, please feel free to contact me.Diane M SmithExecutive DirectorVermont Mortgage Bankers Association
|Thanks to the Mass MBA for providing this Article!
The HVCC BASICS
Home Valuation Code of Conduct
effective May 1, 2009
Kevin M. Cuff, MPA
Massachusetts Mortgage Bankers Association
The HVCC goes into effect for loans with applications dated on or after May 1, 2009. The requirements of the HVCC apply to the lender customers of Fannie Mae and Freddie Mac (Agencies).
There are no specific responsibilities placed on appraisers by the HVCC. The HVCC applies to loans to be sold to Fannie Mae and Freddie Mac. It does not apply to FHA or VA loans at this time.
The HVCC does not require a lender to use an appraisal
management company. However HVCC mandates appraisal ordering procedures
- see below for specifics.
The HVCC Background - Why was this implemented?
The HVCC was implemented to protect
appraisal independance. Lenders (Fannie Mae or Freddie Mac
Seller/Servicer), their agents, and third parties may not influence or
attempt to influence the development, reporting, result or review of an
appraisal through coercion, extortion, collusion, compensation,
inducement, bribery or any other means. Lenders, agents and third
parties cannot withhold payment or future business, request a specific
valuation or promise future business to an appraiser.
Lenders must ensure that the appraisal process is completely independent of their loan production. Loan production staff, including loan
originators, may not select, retain, recommend or influence the
selection of appraisers for specific assignments or for inclusion of a
lender's list of approved appraisers. Employees tasked with selecting
appraisers must be appropriately trained and qualified in real estate
appraisals. This includes knowledge of USPAP. There can be no substantive
communications with an appraiser or appraisal management company
relating to or having an impact on valuation.
Payment for the Appraisal
The appraiser may be compensated by the lender, AMC or other lender-authorized third party. The appraiser cannot be paid by the mortgage broker. The appraiser cannot be paid by the borrower/homeowner or real estate sales agent.
Banks and Credit Unions
There is no requirement that a lender use an AMC. Financial institutions may mange the process internally as long as certain provisions of the HVCC are complied with. Lenders may use a pre-approved list to select
an appraiser as long as the selections are independent from the loan
production staff.Lenders may use in-house appraisers as long
as they are independent of loan production and meet other requirements
of Section IV-B of the HVCC.
Mortgage brokers may not select, retain or compensate appraisers.
Mortgage brokers may not provide the lender
with a list of appraisers to be used when ordering appraisals for that
particular broker.Mortgage brokers may initiate the appraisal
order directly from an appraisal management company that was
specifically authorized by the lender. This means if the lender uses
more than one AMC, the lender must tell the mortgage broker which
specific AMC to use.Mortgage brokers may not order the appraisal from the lender's list of approved appraiser if the lender manages the process internally.
Mae and Freddie Mac have online information on the HVCC that is geared
to lenders and useful for others as well. Both Agencies have FAQ's and
other material on their sites. Here is a list of helpful resources
found on their web sites:
VBA/VMBA Annual Mortgage Day
May 13, 2009
Capitol Plaza Hotel &
100 State Street, Montpelier
The Mortgage Committee of the
Vermont Bankers Association, in conjunction with the Vermont Mortgage Bankers
Association are pleased to present this year's Mortgage Day.
at this conference will learn about:
Link to the Program Description and Registration Form posted on the Events Page of our Website: VBA/VMBA Mortgage Day
- Legislative issues and proposed changes
affecting banking in Vt
- How to Get Ready for Tomorrow with Steve Richman
RESPA & Reg Z changes
New Appraisal Addendum
Dinosaurs and Vermont Foreclosure Law
From the time dinosaurs roamed the
earth until a few short years ago, Vermont
was a "strict foreclosure" state - one of only such two states in the country. Strict foreclosure is a straightforward
process whereby: lender sues defaulting borrower; lender obtains court judgment
against borrower and becomes the legal owner of the property; and finally, lender
sells the property to a third-party buyer.
Andy Mikell, State Manager and Title Counsel ,
Attorneys Title Corporation
While there are various scientific
theories about when and why Tyrannosaurs and Brontosaurs became extinct, we know
with scientific precision when and why the use of strict foreclosure for
residential property in Vermont
A 2005 Vermont Bankruptcy court decision
entitled In re: Chase held that title to the property might be
unmarketable if a lender acquires title via strict foreclosure. This court case
made it hard for banks to sell foreclosed properties - who wants to buy
unmarketable property? Given the problem, attorneys for lenders began using an
alternate method of foreclosure known as "foreclosure by sale". According to the Bankruptcy court, if the property
is sold at an auction in compliance with the foreclosure process, title will be
In contrast to a strict
foreclosure proceeding where a lender conveys title by deed, in a foreclosure
by sale proceeding no deed is required and title is legally transferred to the highest
bidder at auction by way of a "Confirmation Order" issued by the Superior Court.
Since use of the auction process eliminates
the possible title issues caused by the Chase decision, foreclosure by
sale is now the default procedure used to foreclosure residential property.
a result, use of strict foreclosure has gone the way of the dinosaur.
Thanks to Andy Mikell, Vermont Attorneys Title Corporation, Diamond Sponsors for providing this article.
For more information, contact Andy at email@example.com
May 7, 2009
Sheraton Burlington Conference Center
5:00 - 6:00 Social Hour (cash bar) Notice there will be a vote of the Membership at the Annual Meeting to elect Board of Governors for the open positions in addition to a proposed Amendment to the Bylaws to provide Board member indemnification &
to add our Canons of Ethics as a Preamble to our Bylaws.
6:00 - 7:00 Keynote Speaker - Dr. Steve Taubman
7:00 - 8:00 Dinner and
Note - this is a Keynote presentation unlike any we've ever had before
Check out Dr. Steve's Keynote Program!
Dr. Steve Taubman is the president and founder of Inner Selling Institute (ISI), a company dedicated to helping sales professionals achieve results.
Before becoming a keynote speaker, sales team
trainer, and best selling author, Dr. Taubman was one of the most
sought after hypnotists by college and corporate markets, performing
throughout the United States and the Caribbean. His programs have
received rave reviews and standing ovations for their humor, energy,
and polish. Dr. Steve has offered to provide this one hour program for us as part of our Annual Meeting program so he can promote his upcoming Sales Training seminar. As a VMBA member you will receive a discounted price. Please check out the Sales Training offer: Increase Your Mind, Increase Your Sales
For the VMBA Annual Meeting
LINK TO SLATE OF NOMINEES
LINK TO PROPOSED AMENDMENT TO THE BYLAWS
VMBA - Expanding our Programs
Partnerships with the
New England MBAs & CampusMBA
Some of you may have noticed that we offered our second CampusMBA program this year. Last week you had the opportunity to attend a Webinar on the Relief Refinance Mortgage program. In January, we offered a full day FHA Fundamentals workshop with CampusMBA.
I have had questions about the pricing of the Webinar programs. The prices are set by CampusMBA, and it's the same in VT as it would be in Iowa or anywhere. We can't alter the price, but you are welcome to "host" your company employees in one conference room, so your per person cost is lower.
Despite the higher cost of CampusMBA programs, we felt it's better to offer select national programs to you. We'll continue to offer our own seminars - but in these busy times, we want to give you the chance to attend pertinent webinars, and get the benefit of MBA MEMBER pricing. Note - the Member Pricing is only available for the VMBA/CampusMBA co-sponsored programs. Most of the smaller banks and lenders in VT are not individual members of the national MBA, so you do get national-quality training, as a benefit for your VMBA member dues on these co-sponsored programs.
Also - you may attend any of the New England MBA programs at MEMBER cost when you let them know you are a VMBA Member.
A link to the other MBA's websites, where you'll find their current programs is now posted on our EVENTS page of our website. Check out our new EDUCATION page on our website, and find the links to NE MBAs there: VMBA Education Page
A great success
Our event began with a meeting with the Commerce Committee. We had a great reception from the committee members who were grateful for the direct update from the industry. Thanks so much to our presenters, representing all of our lender members, Christie Mitchell, Banker, Jason Pidgeon and Kathy Simanskas, Credit Unions, Heidi Hayward Urish, Broker, Mark Severance, Licensed Lender. In addition to the update, we provided the committee members with a VMBA position paper on Bills of significant to us. At the suggestion of the Commerce Committee, we have drafted a RESOLUTION from the Vermont State House to Washington reinforcing our concerns over the high fees and stringent underwriting standards applied to our borrowers despite our exemplary market performance.
During lunch we heard from Thomas
Candon, Deputy Commissioner of Banking, BISHCA and Andy McLean, VMBA
Lobbyist with McLean, Meehan & Rice.
Vermont Mortgage Bankers Association