Alabama House Bill 529
The Governor of Alabama signed into law HB 529 which clarifies the Alabama Banking Department’s authority to examine subsidiaries and affiliates of state banks and bank holding companies.
California Reorganization
The California Department of Corporations (“DOC”) and the California Department of Financial Institutions (“DFI”) will merge to form the Department of Business Oversight (“DBO”), effective July 1, 2013.
Colorado Senate Bill 156 and Senate Bill 159
The Governor of Colorado signed into law SB 156 and SB 159, to extend the continuation of the Board of Mortgage Loan Originators in the Division of Real Estate (“Board”). SB 156 extends the repeal date of the Board for five (5) years, until September 1, 2018 and requires the Board to deny, refuse to renew, or revoke the licenses of persons who commit specified offenses, bringing Colorado’s statutes in line with federal law. This legislation extends the repeal date of the Division from July 1, 2013 to September 1, 2024.
Connecticut House Bill 6706
The Connecticut legislature passed HB 6706, which in part amends Connecticut General Statutes §§7-34(a) and 49-10 regarding fees associated with the assignments of mortgage debts. These sections were effective July 15, 2013.
This legislation increases the amount that nominees of a mortgagee must remit to the town clerk for the recording of any document, including, but not limited to, a warranty deed, a quitclaim deed, a mortgage deed, or an assignment of mortgage. The nominee must remit $116 for the first page of such warranty deed, quitclaim deed, mortgage deed, or assignment of mortgage; $5 for each additional page of such deed or assignment; and $2 for each assignment of mortgage, subsequent to the first two assignments. This legislation significantly increases the first page recording fees for MERS loans from $53 to $116.
Connecticut Senate Bill 859
The Governor of Connecticut signed into law SB 859, regarding private transfer fees. This law was effective June 13, 2013. This legislation bans private transfer fees on and after June 24, 2013. A “private transfer fee” is, with some exceptions, a fee or charge payable (1) upon the conveyance and subsequent conveyance of an interest in real property located in Connecticut or (2) for the right to make or accept the conveyance.
Delaware Senate Bill 38
The Delaware legislature passed SB 38, relating to the regulation of appraisal management companies (“AMCs”). This legislation requires all AMC’s operating in the state as of July 1, 2013 to become registered on or before July 1, 2014.
Florida Senate Bill 112
The Governor of Florida signed into law Senate Bill 112 relating to filing false documents against real or personal property. Specifically, this legislation creates the offense of filing or directing to file, with the intent to defraud or harass another, a document in an official record which contains materially false, fictitious, or fraudulent statements or representations that affect the owner’s interest in property described in the document. The legislation is effective October 1, 2013.
Florida House Bill 267
The Governor of Florida signed into law HB 267 relating to real property and conveyances. Specifically, this legislation deletes the requirement that blank spaces be included on warranty deeds to allow for entry of social security numbers of grantees on deed and provides that certain types of governmental or quasi-governmental liens on real property are valid and effectual against certain creditors or purchasers only if recorded in a specified manner. This legislation is effective October 1, 2013.
Georgia House Bill 83
The Governor of Georgia signed into law 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.
Georgia House Bill 160
The Governor of Georgia signed into law HB 160, which relates to mortgages, conveyances to secure debt and liens in general, and prohibits a fee for a future conveyance except under limited circumstances. The legislation was effective May 6, 2013.
Indiana Senate Bill 238
The Governor of Indiana signed into law SB 238 which amends charges for consumer loans and credit sales. This legislation is effective July 1, 2013.
This legislation amends parts of the Indiana Uniform Consumer Credit Code that prescribe the maximum credit service charge for a consumer credit sale (other than a sale involving a revolving charge account) and the maximum loan finance charge for a supervised loan. The amendments increase the applicable amounts financed that are subject to the graduated service charge or loan finance charge percentages.
Kansas Senate Bill 129
The Governor of Kansas signed into law SB 129 regarding the mortgage rate interest cap under Kansas Statute § 16-207. This legislation is effective July 1, 2013.
Under the prior law, this maximum annual interest rate was an established rate of no more than 1.5 percentage points above a specified monthly floating cap by the Federal Home Loan Mortgage Corporation (Freddie Mac). SB 52 amended the maximum annual interest rate for first real estate mortgage loans and contracts for deeds under K.S.A. § 16-207. The maximum annual interest rate increased from a rate of no more than 1.5 percentage points to no more than 3.5 percentage points above a specified monthly floating cap by Freddie Mac.
This legislation repeals K.S.A. 16-207, as amended by 2013 SB 52. This legislation removes a provision in the mortgage interest rate law that established a floating cap on the interest rate charged for first real estate mortgage loans and contracts for deeds and required computation and publication of the rate on a monthly basis. With the elimination of the specified interest rate cap, parties will be subject to provisions in continuing law which provides a rate that could not exceed 15.0 percent per annum, unless otherwise specifically authorized by law.
Louisiana House Bill 76
The Governor of Louisiana signed into law HB 76, repealing the sunset provision for licensing application assessments of appraisal management companies. Specifically, this legislation extends the sunset date for real estate appraisal management company licensing application assessments from December 31, 2013 to December 31, 2015.
Maine House Bill 378
The Legislature of Maine overrode the Governor’s veto and passed into law HB 378, regarding recording fees. This law is effective October 9, 2013.
This legislation changes the document filing fees for county registries of deeds. Specifically, this legislation increases the amount for receiving, recording and indexing any instrument that may be recorded and for which a specific fee is not set forth from $13 to $19 for the first record page and $2 for each additional record page or portion of an additional record page. In addition, if more than 4 names are to be indexed, a fee of $1 must be paid for each additional name, counting all grantors and grantees. The fee for recording, indexing and preserving plans has increased from $15 to $21.
Maryland Senate Bill 436 and House Bill 1209
The Governor of Maryland signed into law SB 436 and HB 1209, which amend current provisions regarding indemnity mortgages. Specifically, these bills exempt specified indemnity mortgage transactions from the recordation tax, alter the transaction amount that is subject to the recordation tax for supplemental instruments of writing, make specified refinancing instruments exempt from the recordation tax, and alter the definition of “supplemental instrument of writing.” The bills are effective July 1, 2013.
Missouri Senate Bill 235
The Governor of Missouri signed into law SB 235, relating to residential real estate loan violations and reporting. The bill is effective August 28, 2013.
Missouri Appraisal Management Regulations
The Missouri Real Estate Appraisers Commission, an agency of the Division of Professional Registration of the Department of Insurance, Financial Institutions and Professional Registration adopted regulations concerning appraisal management companies. The regulations are effective June 30, 2013. This regulation adds reference to appraisal management companies to implement the provisions of MO HB 1103 which became effective August 28, 2012. This amendment expands the definition of “licensee” to include a licensed appraisal management company.
Ohio Regulations Regarding Temporary MLO Licenses
The Ohio Department of Commerce, Division of Financial Institutions, Consumer Finance Section adopted administrative rules 1301:8-3-25 and 1301:8-7-30 implementing the new temporary mortgage loan originator licensing law. These rules are effective June 7, 2013.
The Ohio Administrative Code (“OAC”) 1301:8-3-25 establishes an application fee, expiration and extension request process for temporary mortgage loan originator licenses. OAC 1301:8-7-30 establishes an application fee, expiration and extension request process for temporary loan originator licenses.
Oregon House Bill 2239
The Governor of Oregon signed into law HB 2239, which revises the Oregon Mortgage Lender Law (“MLL”). The revisions to the MLL require certain entities previously exempt from the requirement to be licensed in order to engage in the business of making mortgage loans to now obtain a license from Department of Consumer and Business Services. The effective date is January 1, 2014.
The current law exempts bank and financial holding companies, and subsidiaries and affiliates of holding companies and financial institutions, from licensure requirements. This legislation limits the exemption for holding companies to financial holding companies and bank holding companies that do no more than control a subsidiary or affiliate and do not engage in the business of a mortgage banker or mortgage broker. The measure also removes subsidiaries and affiliates from the exemption entirely.
Oregon House Bill 2528
The Governor of Oregon signed into law HB 2528, which relates to paying interest on amounts collected in lender’s security protection provisions. The legislation is effective January 1, 2014.
Oregon law requires interest be paid on lender-required security protection provisions, such as moneys held in escrow accounts to cover expenses such as taxes and insurance on real property secured by a mortgage. The current requirement only applies to property that is worth $100,000 or less. This legislation removes the $100,000 cap on the value of property subject to real estate loan agreements that may receive interest on moneys held in lender-required security provisions, allowing interest payments on such moneys regardless of the value of the property. This legislation also makes technical language changes.
Oregon House Bill 2531
The Governor of Oregon signed into law HB 2531, relating to appraisal management company (“AMC”) registration. This legislation expands the definition of an AMC to include companies ordering appraisals for purposes not related to mortgage loans or mortgage securities. The legislation is effective January 1, 2014.
Pennsylvania Senate Bill 419 and House Bill 1124
The Governor of Pennsylvania signed into law SB 419 and HB 1124. SB 419 relates to validating conveyances and other legal instruments which have acknowledgements containing technical errors. HB 1124 relates to amending Title 7 (Banks and Banking) of the Pennsylvania Consolidated Statutes, further providing for definitions, for license requirements, and for exceptions to license requirements. SB 419 is effective January 1, 2014 and HB1124’s anticipated effective date is September 2, 2014.
Pennsylvania Regulations Regarding Licensing of Appraisal Management Companies
The Pennsylvania State Board of Certified Real Estate Appraisers adopted a temporary rule regarding appraisal management company registration. This rule was effective June 8, 2013 and expires on February 1, 2015.
Rhode Island House Bill 5292
The Governor of Rhode Island signed into law HB 5292, relating to taxation. This legislation authorizes the tax collector of the town of Glocester to furnish a tax certificate upon application for any municipal lien certificate for taxes assessed against mobile or manufactured homes and directs the closing agent at any transfer of same to collect said taxes and transmit the monies to the tax collector. This legislation was effective July 1, 2013 and applies to taxes assessed on December 31, 2012 and thereafter.
Texas Senate Bill 1004
The Governor of Texas signed into law SB 1004, relating to the regulation of residential mortgage loan originators, residential mortgage loan companies, mortgage bankers, and residential mortgage loan servicers under the jurisdiction of the Department of Savings and Mortgage Lending. The bill is effective September 1, 2013.
Current Texas law establishes multiple individual licenses to practice residential mortgage loan origination and each contains the same required qualifications for licensure, with residential mortgage loan originators employed by mortgage bankers licensed under a different set of provisions than originators employed by mortgage companies. This legislation seeks to simplify the mortgage originator licensing process by reducing the multiple individual licenses to one license type for mortgage origination, which would enable a qualified individual to work for either a mortgage company or a mortgage banker so long as the requirements for licensure are met. The bill also seeks to implement other recommended technical changes to better organize and clarify current law regulating such services.
Texas Senate Bill 232 and House Bill 1721
The Governor of Texas signed into law SB 232 and HB 1721, relating to the use of the Nationwide Mortgage Licensing System and Registry (“NMLS”) in connection with the regulatory authority of the consumer credit commissioner. The bills are effective September 1, 2013.
Texas Supreme Court Ruling – Home Equity Lending Regulations
The Texas Supreme Court issued a long-anticipated ruling regarding certain home equity interpretive regulations, upholding the Texas Court of Appeals decision that lender fees are not interest and are therefore subject to the 3% cap on fees.
The Supreme Court also addressed the use of powers of attorney and the rebuttable presumption for sufficient mailing and delivery of the 12-day notice.
Wyoming House Bill 26
The Governor of Wyoming signed into law HB 26, which creates the Wyoming Appraisal Management Company Registration and Regulation Act. This act is effective July 1, 2013.