Arizona Association of Mortgage Professionals

Arizona Mortgage Broker Bill Howe is new President-elect of National Association of Mortgage Brokers

Arizona Association of Mortgage Brokers - Arizona veteran mortgage broker Bill Howe just assumed the President-elect position on July 1 for  the National Association of Mortgage Brokers (NAMB).  AAMB recently caught up with Bill to ask him some questions.

 

AAMB

As President-Elect of the National Association of Mortgage Brokers, what do you perceive to be the greatest opportunity for the mortgage broker in the remaining five months of 2009?

HOWE

In looking back at the archives of “News From NAMB” and “NAMB Fights for YOU,” I counted twelve (12) major bills that NAMB has testified or has written a formal response to so far in 2009.  Several Calls to Action to the membership were posted.  NAMB sued FHFA on our behalf.  At this time of need in our industry and for the association, I say get involved and support these efforts to protect our industry.  If you’re serious about staying in the mortgage business, it’s time to get involved.  Respond to legislative calls to action.  Recruit a new member.  Donate to the NAMBPAC. 

 

AAMB

It is an honor to have an AAMB member on the National Board.  As an Arizona mortgage broker, what is the single most important area that mortgage brokers need to unite around?

HOWE

Immediately respond to and support the 18 month delay in the HVCC.  Then continue to stay involved.  Make sure your contact information with AAMB and at NAMB.org is correct so we can disseminate the information to you.  And again, invite someone to be a member. 

[To take action on the HVCC, click here]

 

AAMB

As you know, AAMB is a highly respected organization in Arizona business, politics and the community.  What might you say to a mortgage broker who isn't a member of this association currently?

HOWE

I have had this very conservation with several people I have known through the years.  You may not like me, or Marc Savitt, or Jim Pair, or anyone else that is involved.  But it’s not about us as individuals.  It’s about all of us together, standing united against the challenges we face.  You must support what NAMB does.  Who else speaks for the mortgage broker at the federal level?  Can you name any organization that has the clout NAMB does on the hill to protect our business?  It’s time to join. 

 

AAMB

If everyone in the association were to dedicate 30 minutes of their time to the association this year, where would you tell them to invest those 30 minutes?

 

HOWE

Ask someone to become a member.  Donate twenty dollars per closed loan to NAMBPAC through payroll deduction.  Get involved.

[For info about NAMB’s Political Action Committee click here]

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Bill Howe is one of only a handful of mortgage professionals in Arizona with both the CMC and CRMS professional designations.  He has been in the business for 22 years, is past president of the Arizona Association of Mortgage Brokers and has served on several NAMB committees.  Bill is a graduate of Arizona State University

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Marketing Tip: Help your clients earn a Federal Tax Credit for HVAC Home Improvements

Arizona Association of Mortgage Brokers  --  We are all aware that in February President Obama signed The American Recovery and Reinvestment Act of 2009.

What many are not aware of is that this Act provides for a tripling of the tax credits for certain heating and cooling upgrades to their homes!

During times of economic recovery it is typical for homeowners to stay put and make repairs to their existing homes.

It is likely that your mortgage clients are not familiar with this wonderful opportunity. 

Why not partner with a trusted HVAC purveyor in your marketplace, and put together a nice package that will include a special deal on a new HVAC system, a low-interest new mortgage to pay for it, and a special tax credit from Uncle Sam to boot!

It is likely that some of your clients are contemplating this anyway.

Here is a link to the Air-Conditioning, Heating, and Refrigeration Insitutes's website with all the details.

 

Federal Reserve Board proposes significant changes to Regulation Z (Truth in Lending)

Fed Chairman Ben Bernanke, and Fed Board Governor Elizabeth Duke.

Arizona Association of Mortgage Brokers -there are potentially big changes coming down the road regarding consumer disclosures, and Reg Z (Truth in Lending).

Fed Press Release:

"The Federal Reserve Board on Thursday proposed significant changes to Regulation Z (Truth in Lending) intended to improve the disclosures consumers receive in connection with closed-end mortgages and home-equity lines of credit (HELOCs). These changes, offered for public comment, reflect the result of consumer testing conducted as part of the Board's comprehensive review of the rules for home-secured credit. The amendments would also provide new consumer protections for all home-secured credit.

"Consumers need the proper tools to determine whether a particular mortgage loan is appropriate for their circumstances," said Federal Reserve Chairman Ben S. Bernanke. "It is often said that a home is a family's most important asset, and it is the Federal Reserve's responsibility to see that borrowers receive the information they need to protect that asset."

To shop for and understand the cost of credit, consumers must be able to identify and understand the key terms of the mortgage. In formulating the proposed revisions to Regulation Z, the Board used consumer testing to ensure that the most essential information is provided at a suitable time using content and formats that are clear and conspicuous.

"Our goal is to ensure that consumers receive the information they need, whether they are applying for a fixed-rate mortgage with level payments for 30 years, or an adjustable-rate mortgage with low initial payments that can increase sharply," said Governor Elizabeth A. Duke. "With this in mind, the disclosures would be revised to highlight potentially risky features such as adjustable rates, prepayment penalties, and negative amortization."

We will very shortly be in the 120 day comment period, and then we are likely to see some changes occur.  The National Association of Mortgage Brokers is aware, and will be taking action soon.

Here are more details from the Federal Reserve, and here is a summary of the proposed changes.

 

Sound your voice and be heard

Arizona Association of Mortgage Brokers - The blog you are reading has become the voice of the Arizona Mortgage Broker, on the Internet.

We have many exciting plans for this social media channel, but as we go along, we also want to empower you to join us in the journey.

A blog essentially puts in our hands the power of a television station, with a blog's ability to transmit video images. 

A blog also puts in our hands the power of a radio station, with a blog's ability to transmit audio messages.  This is even more powerful when you link the audio with iTunes.

A blog also puts in our hands the power of a newspaper, or magazine, with a blog's ability to instantly transmit the printed word, in powerful ways to our membership.

But also, the blog put in our hands the ability to interact with our subscribers.  You now have an immediate voice, and can share that voice in the comment section, or by forwarding individual articles, using our "ShareThis" tool below.

Recently we ran an article on the unintended consequences of the new HVCC law, and 21 of you grabbed the megaphone, and made your voice heard.

As time goes on we intend to build relationships, using this blog, with local media, government representatives, the financial community, the State of Arizona, and even the nation.

To do this, we need your active participation.  So...grab that megaphone, and make your voice heard in the comment section of our blog posts.  Furthermore, please take 5 minutes and refer this site to 5 of your friends in the mortgage business. 

Together, we can make this the premier "go to place" for Arizonans to interact with our industry.

 

Alert: Mortgage Disclosure Improvement Act (MDIA) Effective July 30, 2009

Arizona Association of Mortgage Brokers -  On July 30, 2009 guidelines under the Mortgage Disclosure Improvement Act (MDIA) released by the Federal Reserve Board will go into effect.  This is two months earlier than the original date.

This new law will affect your business in the following areas:

• the collection of upfront fees from borrowers

• new 3-day and 7-day regulations regarding the Truth-in-Lending Statement (TIL)

These are important changes and will soon become the law of the land.  Be sure to familiarize yourself with MDIA and change your internal systems accordingly.

Here is a summary of the new law, from AllRegs, and here is a copy of the Mortgage Disclosure Improvement Act.

Please use the "ShareThis" button below to forward this article to your mortgage broker colleagues.

 

Are you ready for the August 1st, 2009 deadline for the FTC's Red Flag Rule?

Arizona Mortgage Brokers Association - On August 1st, 2009, the Federal Trade Commission's (FTC) Red Flag Rule goes into mandatory compliance for all Mortgage Brokers. 

You may recall that this rule had been delayed to allow time for compliance.  Well, the day of reckoning is here.

Here are the basic four provisions of the statute:

1. Identify Relevant Red Flags - identify the red flags of identity theft you're likely to come across in your business.
2. Detect Red Flags - Set up procedures to detect those red flags in your day-to-day operations.
3. Prevent and Mitigate Identity Theft - If you spot the red flags you've identified, respond appropriately to prevent and mitigate the harm done.
4. Update your Program - the risks of identity theft can change rapidly, so it's important to keep our program current and educate your staff.

Once again, it is important that we understand that this Red Flag Rule is not a casual suggestion, on August 1st, 2009, it will be law.

Here are some resources to help you get your program built, if you haven't already:

• Federal Trade Commission (FTC) - Fighting Fraud with the Red Flag Rule - A How-To Guide for Business.
• National Association of Mortgage Brokers (NAMB) - Mandatory Red Flag Compliance Program.

As mortgage brokers, we are always looking for ways to bring value to our clients.  It would be a great benefit for you to explain to your clients the steps you now have in place to protect their identity from theft, and fraud!

Take action on the HVCC!

Arizona Association of Mortgage Brokers - a legislative call-to-action from the National Association of Mortgage Brokers (NAMB.)

Please call your Representatives today and urge them to cosponsor H.R. 3044. The bill was introduced by Representatives Childers (D-MS) and Miller (R-CA) and it calls for an 18 month moratorium on the Home Valuation Code of Conduct (HVCC).  Click here for a copy of NAMB’s press release on H.R. 3044.

When you speak with your Representative, simply ask him or her when they plan to sign on as a cosponsor of H.R. 3044. In addition, please refer to the two following articles on the HVCC in your discussion and forward them to their offices.  Click here for contact information for your Representative.

Low Ball Appraisals Spark Uproar – Washington Post (July 3, 2009)

Arizona Republic: New Appraisal Law Creates Unintended Consequences

Arizona Association of Mortgage Brokers -- An article in yesterday's Arizona Republic addresses the possible unintended consequences of the new House Valuation Code of Conduct (HVCC) that went into effect on May 1, 2009.

Mortgage brokers across the country, working together through the National Association of Mortgage Brokers (NAMB), have long been contending that this will ultimately hurt the consumer (see NAMB's position paper).

Now that this law has gone into effect, we would like to hear from mortgage brokers, appraisers, and real estate agents about their view of unintended consequences. What has your experience been?

Please post a comment below.

New IRS Law Allows Refiling of '08 Tax Returns to get a quick refund for a portion of Net Operating Loss Carrybacks!

Arizona Association of Mortgage Brokers -- One of our member brokers told us how he benefited from a new IRS law.  It allows small business owners to refile their 2008 income tax returns to recapture some of the taxes paid, if they showed a loss on their 2008 tax return.

This particular member was able to recapture $2,300 of taxes paid in previous years with an amended return.

Here is the scoop from the IRS:

"The Internal Revenue Service announced today that small businesses with deductions exceeding their income in 2008 can use a new net operating loss tax provision to get a refund of taxes paid in prior years.

To accommodate the change in tax law, the IRS today updated the instructions for two key forms — Forms 1045 and 1139 — that small businesses can use to make use of the special carryback provision for tax year 2008. These forms are used to accelerate the payment of refunds.

The new provision, enacted as part of the American Recovery and Reinvestment Act of 2009, enables small businesses with a net operating loss (NOL) in 2008 to elect to offset this loss against income earned in up to five prior years. Typically, an NOL can be carried back for only two years. The IRS released legal guidance today in Revenue Procedure 2009-19 (Update: please see superceding Revenue Procedure 2009-26) outlining specific details. Some taxpayers must make the election to use this special carryback by April 17, 2009.

“The new net operating loss provisions could throw a lifeline to struggling businesses, providing them with a quick infusion of cash,” said IRS Commissioner Doug Shulman. “We want to make it as easy as possible for small businesses to take advantage of these key tax benefits.”

With the economic downturn and the new law, the IRS expects record numbers of small businesses to be eligible for the refunds. The IRS is putting in special steps to ensure timely processing of these refunds to help small businesses during this difficult period.

Small businesses with large losses in 2008 may be able to benefit fully from those losses now, rather than waiting until claiming them on future tax returns."

If you happened to show a loss on your 2008 tax return, you may benefit from this new tax law.  Note: this information is not intended as professional tax advice.  Consult your accountant or other tax professional to evaluate your specific situation.

If you've already taken advantage of this tax law change, be sure to share your experience in the "Post a Comment" section below.

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What to expect from the AAMB Virtual Office Webinar on Thurs, July 16

This webinar brought to you by the Arizona Association of Mortgage Brokers.

Watch this 1-minute video by Tim Gilker explaining what he'll cover in the webinar, "The Virtual Office - Go Paperless!"

AAMB MEMBERS - $19.00     NON-MEMBERS $49.00

Click to REGISTER

"THE VIRTUAL OFFICE - GO PAPERLESS!" Webinar

THURSDAY, JULY 16

10:00 AM – 12:30 PM

 

After this webinar, you'll discover you can do away with office copiers, printers, fax machines and the toner, paper, repairs that go along with such expensive equipment.

Learn How to:

• Convert Files to PDF (Portable Document Format)
• Stack Files
• Sign Documents (Using Your Own Hand)
• Notate Documents
• Store Documents Electronically

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