In this Issue
State News & Events
Chapter News & Events
Happy Holiday Season to All,
Our industry continues to receive good news with yesterday’s announcement of increased loan limits for conventional loans. https://www.fanniemae.com/content/announcement/ll1710.pdf
2018 is set to a productive year for our membership.
As we put the closing touches on another wonderful year, please make sure to mark your calendars for the WMBA Milwaukee Chapter Holiday Party on Thursday Dec. 14th at Albanese's Roadhouse in Waukesha. The Madison Chapter will be hosting their Holiday gathering on Thursday Jan. 25th (details to follow).
Warmest wishes to you and your families and please let me know how we can help serve you better.
Thank you for your membership!
WMBA President 2017-2018
Legislative Update - George KlaetschMultiple WMBA Bills of Interest Pass Legislature – Await Governor Walker Signature
The Senate and Assembly convened several times between October 31 and November 9 to complete the last floor sessions of 2017. While several big pieces of legislation were sent to the governor, including administrative rule review changes, a resolution for a U.S. Constitutional Convention, a resolution to add victims’ rights to the Wisconsin Constitution, and a bill that repeals the prohibition on nonferrous mining in Wisconsin; there were also significant WMBA bills of interest that passed both houses of the legislature and are now awaiting Governor Walker’s signature.
During the first 11 months of the 2017-18 legislative session, the WMBA has been focused on the following legislation. All of which have successfully passed.
AB-253 Foreclosed Property Sale
Representative Ballweg introduced this bill to establish procedures related to a sale of foreclosed property by a sheriff or referee.
AB-280 Financial Literacy in Schools
Representative Krug introduced this bill to ensure financial literacy is incorporated into the curriculum of Wisconsin public schools.
AB-283 Savings Promotion Prize Programs
This bill was introduced by Representative Stafsholt. The bill authorizes Wisconsin state financial institutions to conduct savings promotion prize programs.
SB-453 Appraisal Management Companies
This bill was introduced by Senator David Craig. The bill addresses regulation of appraisal management companies.
Thanks to the WMBA Board of Directors and Legislative Committee membership for their engagement and efforts in supporting the various bills.
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Dave Motley, CMB will also be speaking to WMBA at our Real Estate and Finance Conference in April.
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A few weeks ago, Heather Dyer, WMBA Association Manager, was in Washington, DC for another association group. She had an opportunity to meet with six MBA staff giving us contacts at the Leadership, Education, and Legislative levels. It was a great discussion on how WMBA has progressed in the last couple of years and how MBA and WMBA can continue to collaborate for the betterment of our members.
William Kooper (MBA) and Heather Dyer (MDS)
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The seminar held on Thursday, November 9 had a panel of 4 top Realtors anf drew approximately 40+ attendees. The comments following the meeting were all positive. Plans are under way for our holiday party on Thursday, January 25, 2018-Location TBD. Our annual bowling event is set for Thursday, March 15, 2018 with the golf outing Thursday, May 17, 2018 at University Ridge. All of these events are fun, well attended, and most worthwhile. The Realtors Association of South Central Wisconsin and the Madison Chapter of the Women's Council of Realtors are sponsoring a "Game Changer" event featuring a national speaker on Thursday, March 8, 2018. Our chapter will be promoting and supporting this event. Details to follow.
Lender's Down Payment Assistance Training
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Registration deadline December 4, 2017
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Washington, D.C. – The Federal Housing Finance Agency (FHFA) today announced the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2018. In most of the U.S., the 2018 maximum conforming loan limit for one-unit properties will be $453,100, an increase from $424,100 in 2017.
The Housing and Economic Recovery Act (HERA) requires that the baseline conforming loan limit be adjusted each year for Fannie Mae and Freddie Mac to reflect the change in the average U.S. home price. Earlier today, FHFA published its third quarter 2017 House Price Index (HPI) report, which includes estimates for the increase in the average U.S. home value over the last four quarters. According to FHFA's seasonally adjusted, expanded-data HPI, house prices increased 6.8 percent, on average, between the third quarters of 2016 and 2017. Therefore, the baseline maximum conforming loan limit in 2018 will increase by the same percentage.
High-cost area limits
For areas in which 115 percent of the local median home value exceeds the baseline conforming loan limit the maximum loan limit will be higher than the baseline loan limit. HERA establishes the maximum loan limit in those areas as a multiple of the area median home value, while setting a "ceiling" on that limit of 150 percent of the baseline loan limit. Median home values generally increased in high-cost areas in 2017, driving up the maximum loan limits in many areas. The new ceiling loan limit for one-unit properties in most high-cost areas will be $679,650 — or 150 percent of $453,100.
Special statutory provisions establish different loan limit calculations for Alaska, Hawaii, Guam, and the U.S. Virgin Islands. In these areas, the baseline loan limit will be $679,650 for one-unit properties, but loan limits may be higher in some specific locations.
As a result of generally rising home values, the increase in the baseline loan limit, and the increase in the ceiling loan limit, the maximum conforming loan limit will be higher in 2018 in all but 71 counties or county equivalents in the U.S.
Questions about the 2018 conforming loan limits can be addressed to LoanLimitQuestions@fhfa.gov.
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The need for standards, implementation guidance and other tools to meet new and changing mortgage industry requirements continues to grow. Supporting these efforts requires expanded industry participation and involvement in the standards development process. These efforts also require additional staff support, tools, and other resources, which will be paid for with the new license fees. The new licenses will also enable MISMO to better understand how industry standards are being used and incentivize additional industry participation. MISMO's current license, implemented in 2004, does not support these priorities.
"The mortgage industry has undergone enormous change since MISMO released the industry's first data standards 13 years ago," said Jan Davis, Vice President of MISMO and Associate Vice President of Industry Standards at MBA. "Back then, there was no common data language for creating a mortgage loan. Today, you cannot deliver a loan without using MISMO standards. As more processes go digital, and the need for collaboration increases, the importance of MISMO standards will continue to grow. The new licenses will ensure that MISMO is positioned to support our ever-changing industry."
Organizations that download the MISMO standards and develop technology based on MISMO standards are required to have the appropriate MISMO license. The appropriate license is determined by two components. The first criteria is based on the date that the standard was issued. The second criteria is based upon how the organization is utilizing the standard. The license criteria is described briefly below:
2004 End-User License - Applies to all MISMO products (standards and collateral) issued prior to January 1, 2018. This license is automatically granted when an organization downloads any MISMO product (MISMO standards or collateral) with an issue date through December 31, 2017.
2018 End-User License - Applies to all MISMO products issued on or after January 1, 2018. The 2018 End-User License is appropriate for organizations that download MISMO products or develop technology that incorporates MISMO products released after December 31, 2017, where the MISMO products are used for internal company use when the organization does not make the MISMO products available to customers or external partners.
2018 Distributor License - Applies to all MISMO products issued on or after January 1, 2018. The Distributor License is appropriate for organizations that develop technology that incorporates MISMO products and makes that technology available to customers or external partners.
Organizations that rely on third-party technology (e.g., lender using a vendor provided LOS) that incorporates MISMO standards or collateral are not required to have a MISMO license.
MISMO members receive both the Distributor License and the End User License for free as a benefit of their membership in MISMO. A MISMO membership costs $2,500 annually. License fees may apply for organizations that are not members of MISMO. These fees will only apply for MISMO standards or collateral released after December 31, 2017. Organizations that are not MISMO members will pay $2,250 for a Distributor License if they are using MISMO standards to build technology for commercial sale and $1,500 if they are building technology they share with partners. The 2018 End User License to use the MISMO standards will cost non-members $1,500. Licenses are annual and will require annual renewal. Downloading the standards may be free if the organization will not be using the standards to build new technology. Costs for MISMO collateral will vary for each MISMO product and may not require annual renewal.
MISMO recognizes that there are many small lenders and service providers involved in the mortgage industry. To ensure that the license fee is not a burden to these organizations, a license fee waiver will be available. The license fee waiver will be available upon application for lenders that originate less than $500 million or fewer than 1,000 loans annually or other organizations such as vendors with fewer than 10 employees.
"Fees generated from MISMO licenses will help MISMO provide additional support to the industry" said Rick Hill, Executive Vice President of MISMO and Vice President of Industry Technology at MBA. "Licensing fees for future standards will also ensure that companies that benefit from the standards will contribute to the standards development process, either through membership and volunteer effort or through the fees. At the same time, the small business fee waiver recognizes the importance of smaller organizations to the health and dynamism of the industry."
Answers to frequently asked questions about MISMO's licensing initiative are available on mismo.org. For more information, contact MISMO at email@example.com.
It is important to note that the new licenses do not apply to standards issued prior to January 1, 2018. MISMO standards issued prior to January 1, 2018 remain subject to the 2004 End-User License. Furthermore, the date a company begins to use the standards or collateral has no bearing on which license is applicable.
Licenses will be required for both MISMO standards and MISMO collateral, such as MISMO toolkits and implementation guides.
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Click here to view the calendar register for the upcoming December webinars
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