April 28, 2009
Vermont Mortgage Bankers Association
In This Issue
VBA/VMBA Annual Mortgage Day
Dinosaurs and Vermont Foreclosure Law
Annual Meeting
VMBA...- Expanding our Programs
Legislative Event...A great success

Platinum Sponsors

Strategic Information Resources
Maureen Devine

Vermont Housing Finance Agency
Erin Perrin

Diamond Sponsors

Chittenden Bank

Law Offices of Fred V. Peet

Vermont Attorneys Title Corporation

Support COTS

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:
Dody Fraher-Ruland
Wells Fargo Home Mortgage


Rocky Ridge

Tuesday, June 9
9:00 Shotgun Start
BBQ Begins at 1:30

Showcasing our Mortgage
Insurance Members

Mortgage Insurance Company

Genworth Mortgage

Insurance Company

Republic Mortgage Insurance Company

Mortgage Guaranty Insurance Company

  USDA Rural Development

Thanks to our


Affiliate Members for your support.

Please Support those who Support us!

 All Member Employees are Welcome!
Join Our Mailing List
Vermont Legislative Update
H-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 state.

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 Smith
Executive Director
Vermont Mortgage Bankers Association
Thanks to the Mass MBA for providing this Article!

Home Valuation Code of Conduct
effective May 1, 2009

Kevin M. Cuff, MPA
Executive Director
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.

Appraiser Selection  
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
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.
Additional Resources
Fannie 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:
Fannie Mae:

Freddie Mac
HVCC Web Page
VBA/VMBA Annual Mortgage Day
May 13, 2009
Capitol Plaza Hotel & Conference Center
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.
Attendees at this conference will learn about:
  • 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
Link to the Program Description and Registration Form posted on the Events Page of our Website:  VBA/VMBA Mortgage Day
Dinosaurs and Vermont Foreclosure Law
 Andy Mikell, State Manager and Title Counsel ,
Vermont Attorneys Title Corporation

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.

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 became "extinct". 

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 marketable.

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.

As 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 amikell@caticaccess.com

Burlington BoatHouse

Annual Meeting
Thursday, May 7, 2009
Sheraton Burlington Conference Center

5:00 - 6:00 Social Hour (cash bar)
6:00 - 7:00 Keynote Speaker - Dr. Steve Taubman
7:00 - 8:00  Dinner and Meeting

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
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.


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

Legislative Event
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.
Diane Smith
Executive Director
Vermont Mortgage Bankers Association