Arkansas House Bill 1907
The Governor of Arkansas signed into law HB 1907, which repeals or amends sections of the Arkansas Code relating to real estate forms which failed to provide constructive notice due to defective certificates of acknowledgment. The legislation is currently effective.
Arkansas Senate Bill 871
The Governor of Arkansas signed into law SB 871, which revises Arkansas’ Fair Mortgage Lending Act. The revisions relate to the provisions concerning the definition of “exempt person,” “loan officer,” and “mortgage servicer,” and concerning the force-placement of hazard, homeowners, or flood insurance and timely payments from escrow accounts. This legislation is effective ninety-one (91) days after sine die adjournment, which is expected to be April 26, 2013.
Colorado Mortgage Loan Originator and Mortgage Company Amendments
The Colorado Department of Regulatory Agencies’ Division of Real Estate recently added two chapters to the Mortgage Loan Originators and Mortgage Companies Act, which define terms and clarify advertising requirements pertaining to mortgage loan originators and mortgage companies. The amendments are effective May 15, 2013.
Colorado Regulations Regarding the Mortgage Loan Originators Licensing and Mortgage Companies Act
The Colorado Department of Regulatory Agencies, Division of Real Estate recently added two chapters to the Mortgage Loan Originators and Mortgage Companies Act regarding disputing information entered into the National Mortgage Licensing System and Registry, and repealing the S.A.F.E. Act Compliance Rule. These amendments are effective May 15, 2013.
Georgia House Bill 83
The Georgia legislature passed HB 83 to amend §7-1-1001 of the Official Code of Georgia Annotated, relating to exemptions from mortgage broker licensing requirements. Specifically, this legislation amends the exemption of licensed real estate brokers and salespersons assisting in a short sale real estate transaction from the mortgage broker licensing requirements.
This legislation exempts a Georgia licensed real estate broker or real estate salesperson not actively engaged in the business of negotiating mortgage loans, or a Georgia licensed real estate salesperson providing information to a lender or its agent related to an existing or potential short sale transaction in which a separate fee is not received by such real estate broker or real estate salesperson from the mortgage broker licensing requirements. A real estate broker or real estate salesperson who directly or indirectly negotiates, places, or finds a mortgage for others shall not be exempt.
Idaho House Bill 8 and House Bill 10
The Governor of Idaho signed into law HB 8 and HB 10 relating to the licensing of entities that make consumer loans under the Idaho Credit Code and amendments to the Idaho Residential Mortgage Practices Act. The legislation becomes effective on July 1, 2013.
House Bill 8 amends the Code to clarify that a license is required to advertise or solicit to make consumer loans in Idaho. This legislation also amends the licensing provisions of the Code to promote efficient licensing processes.
House Bill 10 amends the licensing provisions of the Act to promote uniform and efficient licensing processes in the evaluation of a license applicant and allowing the Director of the Department of Finance to reinstate licenses for a period of 60 days following license expiration for failure to renew. This legislation provides a license exemption for individuals who originate mortgages on behalf of federal, state, or local government housing agencies. This legislation also amends the Act to remove language inconsistent with HUD’s interpretation of the federal SAFE Act relating to an exclusion from the definition of “mortgage loan originator,” and makes it a prohibited practice for a person to violate license-related testing or education procedures. This legislation authorizes the Director to subpoena records related to unlicensed activity by any person and also clarifies licensing exemptions for Idaho attorneys and accountants.
Illinois High Cost Points and Fees Trigger for 2013
The Illinois Division of Banking issued the high-cost points and fees dollar limit for 2013. The dollar amount for 2013 is $992, effective January 1, 2013. Under Illinois law, a loan is a high-cost loan if the total points and fees payable by a consumer at or before closing will exceed the greater of 5% of the total loan amount or $992 (for 2013).
Illinois House Bill 1588
The Governor of Illinois signed into law HB 1588 which amends the Counties Code to establish a $1 per document recording fee for certain filers for documents affecting interest in real property not solely affecting specified easements or public services, and specifying the allocation of this revenue. The legislation also reduces the Rental Housing Support Program State surcharge for recordation of real-estate documentation from $10 to $9. The legislation is currently effective.
Kansas Senate Bill 52
The Governor of Kansas signed into law SB 52 which relates to an increase in the mortgage interest rate cap under Kansas Statute § 16-207. Under current law, the maximum annual interest rate that can be charged for first real estate mortgages and contracts for deeds cannot be more than 1.5 percentage points above a specific monthly floating indexed interest rate by the Federal Home Loan Mortgage Corporation (Freddie Mac). SB 52 increases the maximum rate to 3.5 percentage points above that specific interest rate. This act is effective from and after its publication in the statute book, which is expected to be published in June 2013.
SB 52 amends the maximum annual interest rate for first real estate mortgage loans and contracts for deeds. The maximum annual interest rate increases from a rate no more than 1.5 percentage points to no more than 3.5 percentage points above a specified monthly floating cap by Freddie Mac. The specified monthly floating index rate in law is the yield of 30-year fixed-rate conventional home mortgages committed for delivery within 61 to 90 days accepted under the Freddie Mac’s daily offerings for sale on the last day on which commitments for such mortgages were received in the preceding month.
Michigan House Bill 4975
The Governor of Michigan signed into law HB 4975, which creates new provisions governing appraisal management companies. The legislation is effective April 1, 2014.
Appraisal management companies are required to be licensed by the Department of Licensing and Regulatory Affairs. However, the licensing requirement does not apply to an appraisal management company that is a subsidiary owned and controlled by a financial institution regulated by a federal financial institutions regulatory agency.
Nebraska Legislative Bill 279 and Legislative Bill 290
The Governor of Nebraska signed into law LB 279 and LB 290 relating to loan brokers and the Nebraska Residential Mortgage Licensing Act. The legislation becomes effective three months after the legislature adjourns; therefore the legislation is expected to become law on September 5, 2013.
LB 279 clarifies the definition of a ‘loan broker’ by placing the exclusions from the definition in a separate subsection and specifies the entities to which the phrase is applicable.
LB 290 provides and clarifies for licensees under the Act, amends the period within which notices sent by Department of Banking and Finance are to be sent, and provides that as part of an investigation or examination of a licensee, the Department may rely on reports prepared by a licensee or registrant for certain federal agencies or federally related entities.
New Hampshire Appraisal Management Regulations
The New Hampshire Real Estate Appraiser Board adopted a new regulation which creates new registration requirements for appraisal management companies. This regulation is currently effective.
The new regulation states that appraisal management companies shall meet the requirements set forth under RSA 309-B:12. This citation is an error in the regulation, as the cite relates back to the New Hampshire Accountancy Act. RSA 310-B:12-b relates to the registration of appraisal management companies. The New Hampshire Real Estate Appraiser Board acknowledged this error and said it will revise the regulation.
Under RSA 310-B: 12-b and c, appraisal management companies are required to be registered by the real estate appraiser board. However, the registration requirement does not apply to an appraisal management company that is a subsidiary owned and controlled by a financial institution regulated by a federal financial institutions regulatory agency.
North Dakota House Bill 1389
The Governor of North Dakota signed into law HB 1389 establishing registration requirements for appraisal management companies. An appraisal management company conducting business in North Dakota on or before January 1, 2014 may continue without registering until sixty days after the date rules implementing the registration process created by the North Dakota Real Estate Appraiser Qualifications and Ethics Board take effect. This legislation is effective August 1, 2013.
Oklahoma House Bill 1828
The Governor of Oklahoma signed into law HB 1828, which amends several sections of the Oklahoma Secure and Fair Enforcement for Mortgage Licensing Act. The amendments modify certain definitions and establish licensing requirements, bond requirements, and guidelines for the license renewal process for mortgage lenders. The amendments are effective November 1, 2013.
Utah House Bill 37
The Governor of Utah signed into law HB 37, which repeals a provision of the Utah Residential Mortgage Practices and Licensing Act relative to certain reporting requirements. Specifically, this bill repeals the Utah Division of Real Estate’s requirement to conduct an annual review of the requirements related to the nationwide database imposed by federal licensing requirements or the nationwide database on the Division or a licensee.
Virginia Amendments to Rules Governing Mortgage Lenders and Brokers
The Virginia State Corporation Commission, Bureau of Financial Institutions issued final regulations amending the Rules Governing Mortgage Lenders and Brokers. The amended regulations were effective January 28, 2013 and clarify certain licensing requirements and practices.
Among other things, the final regulations clarify that a person engaged solely in the business of a loan processor or underwriter is not a mortgage broker subject to licensure; set forth the requirements for a licensee’s use of third party loan processors and underwriters; define the term “refinancing”; prohibit licensees from making any false, deceptive, or misleading statements to borrowers or the Bureau; require licensees to use mortgage loan originators who are licensed, covered by the licensee’s surety bond, sponsored by the licensee in the Nationwide Mortgage Licensing System and Registry, and are either an employee or an exclusive agent of the licensee; and amend provisions pertaining to record retention.
Virginia House Bill 1803 and Senate Bill 994
The Governor of Virginia signed into law HB 1803 and SB 994, which amend and reenact
§§6.2-1700 and 6.2-1701 of the Virginia Code relating to mortgage loan originators and licensing requirements. Specifically, these bills conform Virginia statutory law to federal regulations implementing the Secure and Fair Enforcement for Mortgage Licensing Act. This legislation is effective July 1, 2013.
Washington Senate Bill 5210
The Governor of Washington signed into law SB 5210, which amends Washington’s Mortgage Broker Practices Act. Specifically, SB 5210 amends the definitions of “borrower” and “mortgage broker,” amends the exemption for attorneys, prohibited activities by licensees, duration of maintenance of records, and enforcement power. This bill becomes effective July 28, 2013.
Washington Senate Bill 5207
The Governor of Washington signed into law SB 5207 to amend Washington’s Consumer Loan Act (“CLA”). This legislation provides that if a person must be licensed under the CLA but is not licensed, non-third-party fees charged in connection with the origination of the residential mortgage loan must be refunded to the borrower, excluding interest charges. This legislation also updates licensing and enforcement provisions of the CLA. This bill becomes effective July 28, 2013.
West Virginia House Bill 2608
The Governor of West Virginia signed into law HB 2608, amending and reenacting several sections of the Real Estate Appraiser Licensing and Certification Act, as well as adding a new article to the Act, designated as § 30-38A-1, et seq. This legislation relates to the regulation of appraisal management companies, including registration procedures, rulemaking authority of the real estate appraiser licensing and certification board, controlling definitions, and prohibited conduct. The new article is known as the Appraisal Management Companies Registrations Act.
Wyoming House Bill 61
The Governor of Wyoming signed into law HB 61, authorizing the use of a nationwide licensing system for licensing activities regulated by the division of banking under the uniform consumer credit code, requiring fingerprinting and background checks including criminal history record checks for licensure and providing authority to the commissioner of the division of banking to implement nationwide licensing systems. The legislation is effective July 1, 2013.