In this Issue

March 2017 Edition

  Presidents Message

State News & Events

Legislative Update - George Klaetsch

apitol Day Event Recap

Real Estate Conference Details

Annual Golf Outing

Best in Business Awards

National Mortgage Professional Magazine
Features Industry Leader, Michael Kellman

Chapter News & Events

Madison Chapter Events

Presidents Message

As we close out our March business and look forward to the Spring selling season, I am getting excited for the 43rd Annual WMBA Real Estate Conference on April 6th and 7th.   We will have FUN with a wine tasting, great food and great networking on Thursday evening and a full slate of excellent speakers on Friday.  Please consider bringing the origination team from your shop for the afternoon session on Friday which includes speaker Sue Woodard and her talk titled “Out with the Old, In with the New: Top 10 Ways the MLOS of today can WIN”.  I look forward to seeing you all on April 6th and 7th for the pinnacle event of our association.

Golf season is fast approaching and you have two opportunities to golf with your fellow WMBA members this year.  First up is the Madison chapter golf outing at the immaculately cared for University Ridge on May 18.  Then, September 7th at the Broadlands in North Prairie for the WMBA statewide annual golf outing.  Keep watching your WMBA news briefs for registration information. 

Our state is very pleased to be hosting a MBA School of Mortgage Banking class on May 16-19, 2017.  This is a unique opportunity to significantly reduce travel to send people new to our industry or those who need a refresher to the great classes the national MBA puts on.  Special thanks to Waterstone Mortgage for offering space at their facility for this event. More detailed information on this class available here. Speaking of educational options, have you checked the WMBA Online Store for other classes put on by the MBA?  Click here to check them out.

Our social media pages will be buzzing during the conference.  Please take a moment to sign up for each of our platforms prior to the conference so you will be ready.  Each of them are listed at the top right of our WMBA homepage.  Our hashtag for the event is #WMBACONF17.  Start using it now as we build excitement for the big event!

So long until April 6th!

Legislative Update - George Klaetsch

Office of the Secretary Changes at DFI

In late February, Governor Scott Walker appointed Department of Financial Institutions (DFI) Secretary Lon Roberts to the Public Service Commission (PSC). Secretary Roberts filled the seat vacated by PSC Commissioner Phil Montgomery on March 6, 2017.
Lon Roberts was appointed DFI secretary in February 2016. He previously served as a partner and shareholder with the Ruder Ware law firm in Wausau, where he served as president and concentrated his practice in business and commercial law, primarily in the areas of corporate mergers and acquisitions, finance, lending, and private equity capital transactions.
As a result of the Roberts appointment, less than 24 hours later, Governor Walker appointed Deputy Secretary, Jay Risch.  Prior to serving as the DFI’s Deputy Secretary, Risch worked as the government relations director for the Wisconsin Bankers Association. He has also worked for State Senator Alberta Darling and former State Senator Cathy Stepp. He received his Bachelor of Arts degree in Political Science from the University of Wisconsin – Madison.
Mr. Risch will begin his new duties at DFI on March 6, 2017.
WMBA President, Mike Kellman Testifies Before State Senate

On February 28, WMBA President, Mike Kellman provided testimony before the Senate Financial Services, Constitution and Federalism Committee.  As an invited speaker, Kellman was joined by other industry professionals including Department of Financial Institutions Secretary Jay Risch to educate committee members on how the financial institutions industry was impacted by current federal policy.
Kellman’s testimony provided committee members with a robust itemization of how issues such as Dodd/Frank – Ability to Pay, HMDA changes and how compliance regulations on small Wisconsin banks create a tremendous burden to their ability to lend. 
A special thanks to Mike for his willingness to make the trip to Madison and provide a better understanding of how our state elected officials can educate their federal counterparts in how federal regulations continue to create unnecessary burdens to both Wisconsin lenders and borrowers.

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Captiol Day Event Recap

Capitol Day was held March 7, 2017 in Madison. Approximately 40 WMBA members attended to hear various Senate and Assembly Committee members speak. In addition, attendees were able to listen to a panel of Appraisal Management Company Legislators.  The day wrapped up by Legislative visits at the Capitol. 


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43rd Annual WMBA Real Estate Finance Conference

There's Still time to Register!

April 6-7, 2017
Potawatomi Hotel, Milwaukee


PlainsCapitol Bank
Kohner, Mann & Kailas, S.C.


Unable to attend the whole conference, join us on Thursday evening for a reception featuring fabulous food stations which include a Salad Station, Ground Beef and BBQ Pork Slider Station, and Pasta Bar. Participate in complementary wine tasting and live gaming demonstration tables. Test your luck on the Casino floor with reserved Black Jack and Craps Tables.  

Click here for conference information and registration.

Registration deadline - Friday, March 31!

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Save the Date: WMBA Annual Golf Outing

September 7, 2017
Broadlands Golf Club
18 Augusta Way
North Prairie, WI


Best in Business Awards

October 19, 2017
The Madison Concourse Hotel & Governor's Club
1 West Dayton Street
Madison, WI

National Mortgage Professional Magazine
Features Industry Leader, Michael Kellman

Click here to read the interview that appeared in a National Publication. This was great exposure for WMBA. Way to go Mike!


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Chapter News & Events

Madison Chapter


Golf Outing

Thursday, May 18, 2017

University Ridge Golf Course
9002 County Road PD
Verona, WI 

Registation opening soon!






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MBA Update

Down Payment Assistance Program Concerns

On March 3, 2017 the HUD Office of Inspector General (OIG) issued an audit report alleging that HUD failed to adequately oversee more than $16.1 billion in FHA-insured loans that may have been originated through certain DPA programs. This report was based on three separate HUD/OIG audits of lenders participating in state or local Housing Finance Agency (HFA) programs.

According to the OIG, HUD enabled the growth of these “questionable” programs and guaranteed nearly $12.9 billion in FHA-insured loans between October 1, 2015 and September 30, 2016 under HFA DPA programs that allowed FHA borrowers to finance their own downpayments through an increase in their mortgage interest rate. The OIG concluded once again that DPA programs that require borrowers to obtain loans with premium interest rates and repay the downpayment assistance through higher mortgage payments and fees do not comply with HUD program guidelines.

This finding contradicts a HUD General Counsel's opinion and the HUD Deputy Secretary’s decision memo in a prior audit dispute. The OIG also concluded that HUD did not have adequate controls in place to monitor these loans, thus failing to protect FHA borrowers against higher monthly mortgage payments and fees and putting the FHA Mutual Mortgage Insurance (MMI) Fund unnecessarily at risk. Despite the OIG’s conclusion, FHA has issued previous statements (here and here) asserting that state and local HFA DPAs can be permissible under certain circumstances. 

Compounding these concerns about DPAs is a recent Washington State court decision by the King County Superior Court that ruled that the housing activities of the National Homebuyer’s Fund (NHF) are prohibited in Washington. At issue was whether NHF — a consortium of California-based local HFAs — qualified as a government housing finance agency in Washington.  Although the decision is limited to Washington State and may be appealed, MBA is aware that FHA is also looking into the status of HFAs that are operating outside of their governmental “footprint.” Moreover, some lenders have received calls from FHA Homeownership Centers (HOCs) cautioning them about participation in the NHF program.

With the recent OIG audit report, the Washington case, and FHA’s informal outreach to some lenders regarding “national” HFA programs, MBA recommends that FHA lenders exercise extreme caution and consult with legal counsel regarding the risks of participating in state and local HFAs that utilize DPAs that include premium pricing and the “national” DPA programs. MBA will continue to urge HUD/FHA to issue definitive written guidance to the industry to provide clarity on this important issue. 

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MBA Announced New Strategic Alliance with Lenders One


The Mortgage Bankers Association (MBA) announced a new strategic alliance with the Lenders One® Cooperative that will provide new benefits to both MBA and Lenders One member companies.

"MBA is proud to be collaborating with Lenders One to add to the wide array of first class products and services we offer our members.  This agreement will help both parties, and our members, by providing additional cost savings and benefits that help independent mortgage bankers and community banks compete and succeed in today’s lending environment," said David H. Stevens, CMB, President & CEO of the Mortgage Bankers Association. 

As a result of the new agreement, MBA members will be eligible to join Lenders One and receive a discount on their cooperative dues as well as enjoy numerous benefits that Lenders One provides to its members. Similarly, Lenders One members who subsequently join the MBA will receive a discount on their first year of MBA membership dues as well as savings on MBA products and services.  Further, this strategic alliance will allow lenders to leverage Lenders One’s vast network of preferred vendors and investors.

“Lenders One is excited about our new alliance with the MBA and we believe that our industry leading provider network and innovative technology can help MBA members prosper in the ever-changing mortgage market. Also, we believe MBA’s market experience, advocacy expertise and strong educational programs will further enhance the value the agreement brings to the members of Lenders One,” said Bryan Binder, CEO of Lenders One.

Stevens added, “Our members have benefited from these types of partnerships and I have no doubt that Lenders One and its members will benefit as well.  MBA is proud to be the one voice of the entire real estate finance industry, and we are excited to join forces with Lenders One and its members.”

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The School of Mortgage Banking



The School of Mortgage Banking (SOMB), Course I gives you the power to be a more knowledgeable and productive team player.

Course Dates:

April 18-21, 2017 | Denver, Colorado
May 16-19, 2017 | Pewaukee, Wisconsin

Lessons You Will Learn:

Day 1: Introduction to Mortgage Banking, Ethics, Regulatory Compliance, Mortgage Law
Day 2: Loan Products, Loan Production
Day 3: Fraud & Quality Assurance, Loan Administration, Case Studies
Day 4: Secondary Marketing, Warehouse Lending, Commercial Lending

Who Should Attend:

SOMB I is designed for residential mortgage executives, management, loan originators, processors, underwriters, servicers and compliance professionals.

Click here to Register!

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Wisconsin Mortgage Bankers Association Online Store

The WMBA and the MBA have teamed up to bring you great access to the education components you need to stay current in the Mortgage Banking Business.

For every product purchased through the WIMBA-MBA store the WMBA receives a % back.  

Please use the link below to help support our Association!

Wisconsin Mortgage Bankers Online Store

Remember to check back often!