Iowa State Guidelines - eprmg.net

1 iowa State Guidelines For Internal Use Only Page 1 of 6 07/09/2014 iowa Guideline s Quick Links: Licensing Wholesale Disclosures Retail Disclosures Redisclosures Closing Documents Fee Information General Requirements General Loan Restrictions and Practices Loan Closings Miscellaneous Second Lien Loans LICENSING Lender Licensing Any company (including a sole proprietorship) that in a calendar year makes, originates, or services at least four mortgage loans secured by owner-occupied residential real property located in iowa must have a Mortgage Banker License o PRMG has a Mortgage Banker License (Company License # 2013-0098)

2 O PRMG can do Retail OR Wholesale with brokers who have an iowa Mortgage Banker License - Qualified Individual: There is no Qualified Requirement(QI) in iowa o Brick and Mortar: There is no brick and mortar requirement for the iowa Mortgage Banker License Branching: Any location other than the principal office that conducts iowa mortgage business with iowa residents must have a Mortgage Branch Registration; the requirements are: o A branch manager who has a iowa Mortgage Loan Originator License o Disclosure Questions o Cost: $40 PRMG s locations that are authorized to lend in iowa .

3 O Headquarters (Corona, CA) Broker Licensing Applies when PRMG acts as a third party originator and sends the loan to an approved wholesale lender to underwrite and fund Any company (including a sole proprietorship) that in a calendar year arranges or negotiates or attempts to arrange or negotiate at least four mortgage loans or commitments secured by owner-occupied residential real property located in iowa must have a Mortgage Broker License or Mortgage Banker License o PRMG has a Mortgage Banker License o PRMG can broker loans under its iowa Mortgage Banker License Brokers with multiple branches.

4 Each office location of a licensed mortgage broker, other than the main office identified on the Mortgage Broker License, whether or not located in iowa , which conducts business involving iowa residential property must have a Mortgage Branch Registration Mortgage Loan Originators Loan Officer: An individual who for compensation or gain or in the expectation of compensation or gain, either directly or indirectly takes a residential mortgage loan application or modification application, or offers or negotiates terms of an iowa residential mortgage loan must have an iowa Mortgage Loan Originator License Processor/Underwriter.

5 Processors and underwriters who are retained as independent contractors are required to obtain a Mortgage Loan Originator License Return to Top iowa State Guidelines For Internal Use Only Page 2 of 6 07/09/2014 LICENSING CONTINUED Department Contact Superintendent, Division of Banking iowa Department of Commerce 200 East Grand Avenue, Suite 300 Des Moines, IA 50309 (515) 281-4014 Website: Return to Top WHOLESALE DISCLOSURES General Requirements Note: If you click on any blue document title below, it will take you to a sample of that document The disclosures/closing documents listed below are required in addition to applicable federal disclosures, Good Faith Estimate, Truth in Lending, etc.

6 Broker s Initial Disclosures Disclosures that must be included with the broker s initial disclosures are as follows: Loan Brokerage Agreement All loans PRMG s iowa Specific Initial Disclosures The following disclosures are available from our document vendor: Interest Reduction Fee Disclosure Only if Discount Fee is Charged Return to Top RETAIL DISCLOSURES General Requirements Note: If you click on any blue document title below, it will take you to a sample of that document The disclosures/closing documents listed below are required in addition to applicable federal disclosures, Good Faith Estimate, Truth in Lending, etc.

7 PRMG s Initial Disclosures The following disclosures are available from our document vendor: Interest Reduction Fee Disclosure Only if there is a discount fee charged Return to Top REDISCLOSURES iowa Specific Disclosures for the Redisclosure Packages There are no iowa specific redisclosures Return to Top CLOSING DOCUMENTS iowa Specific Closing Documents The following specific closing documents must be completed at closing: iowa Acknowledgment of Receipt of Copies of Signed Loan Documents All loans iowa Addendum to the Note Oral Agreement Notice-All loans iowa Interest Reduction Fee Disclosure- Only if there is a discount fee charged Return to Top iowa State Guidelines For Internal Use Only Page 3 of 6 07/09/2014 FEE INFORMATION General Fee Restrictions: PRMG generally does not accept advance fees, EXCEPT for appraisals through Lender X where they are kept in a trust account until the appraiser is paid.

8 On VA appraisals, PRMG only asks for a pre-authorization on the credit card that will ultimately be charged All fees must be disclosed in writing All fees shall not deviate from industry norms and PRMG s general policies Note: Any fees not allowed/included in the matrix below must be approved by PRMG s Legal & Compliance Department Fees Fee Name Type (Paid to) Allowed Not Allowed Requirement(s) Admin Fee Broker X Not allowed on FHA/VA Application Fee Broker X Brokers may only charge certain bona fide third party fees; ( credit report fees) Appraisal Lender/Broker/ Third-Party X Must be supported by invoices Attorney Third-Party X Permissible if they are for services actually performed that were necessary to the transaction Broker Fee Broker X Wholesale: a broker may charge this fee on borrower paid; Non-Brokered Retail Loans: PRMG does not charge a Broker Fee.

9 Brokered Retail Loans: Only permissible on borrower paid Commitment Fee X Not an approved PRMG fee Courier Third-Party X Charged by the closing agent/closing attorney Credit Report Lender (Retail)/ Broker X Must be supported by invoices; can only be charged by the broker on Wholesale and PRMG on Retail Discount Points Lender X Document Prep Fee Lender X Permissible and reasonable Escrow Fee Third-Party X Permissible if it is for services actually performed; typically included as a settlement closing fee charged by title MERS Fee X PRMG does not charge a MERS Fee Notary Fee Third-Party X Notary Discretion Origination Fee Broker X Wholesale a broker may charge this fee; PRMG does not charge this on Non-Brokered Retail loans.

10 Brokered Out Loans it is permissible Pest Inspection Third-Party X Must be supported by an invoice **Fee Information continues on the next Return to Top iowa State Guidelines For Internal Use Only Page 4 of 6 07/09/2014 FEE INFORMATION CONTINUED Fees Fee Name Type (Paid to) Allowed Not Allowed Requirement(s) Processing Fee Lender (Retail) X Retail: It is permissible; Wholesale: for lender paid it must be a third-party processor that is licensed, on borrower paid a processing fee is permissible Recording Fee Third-Party X Permissible closing cost Settlement Agent Third-Party X Permissible if it is for services actually performed.