Summer 2015 States In Brief

Arizona Department of Financial Institutions Regulation               

The Arizona Department of Financial Institutions adopted the Nationwide Mortgage Licensing System & Registry’s Uniform State Test for licensing of mortgage loan originators effective July 15, 2015. 

California AB 661    

The Governor of California signed into law AB 661, relating to fees for recording real estate instruments. The bill is effective January 1, 2016. 

Connecticut SB 924    

The Governor of Connecticut signed into law SB 924, which amends the Connecticut high-cost home loan provisions and the Connecticut Truth In Lending Act. The bill also amends the provisions governing mortgage broker licensees. The effective date varies depending on the provision. 

Georgia HB 153

The Governor of Georgia signed into law HB 153, relating to real estate closings. The bill was effective

July 1, 2015. 

Georgia HB 322 

The Governor of Georgia signed into law HB 322, which changes the requirements for witnessing of deeds. The bill was effective July 1, 2015.

Georgia HB 184 

The Governor of Georgia signed into law HB 184, which makes several amendments to Georgia law governing the banking and finance industry. Under the bill, it is a felony to willfully transact business as a mortgage loan originator without a license or valid exemption. The bill also provides a procedure for mortgage loan originators who lose their sponsorship to retain their licenses if they find a new sponsor within 30 days. The bill was effective July 1, 2015.

Georgia Department of Banking Regulations 

The Georgia Department of Banking and Finance adopted a Final Rule updating licensing fees for mortgage licenses. The rule is effective July 15, 2015.

Illinois HB 2814 

The Governor of Illinois signed into law HB 2814, which clarifies the law regarding loans made by unlicensed persons. The bill is currently effective. 

Illinois HB 3369      

The Governor of Illinois signed into law HB 3369, which amends several provisions of the Residential Mortgage Licensing Act. The bill is effective January 1, 2016. 

Indiana HB 2814 

The Governor of Indiana signed into law HB 1287, relating to financial institutions. Among other provisions, the bill amends Indiana’s first lien mortgage lending law and Uniform Consumer Credit Code. The bill was effective July 1, 2015.

Louisiana HB 354  

The Governor of Louisiana signed into law HB 354, which increases the renewal fees for mortgage licenses. The bill will be effective August 1, 2015. 

Maine HB 215   

The Maine legislature passed HB 215 and has overridden the Governor’s veto. The bill provides presumption of effectiveness for actions by MERS. The bill is effective October 15, 2015.

Maine HB 529  

The Maine legislature passed HB 529 and has overridden the Governor’s veto. The bill validates certain defects in real estate conveyance made prior to 2013. The bill is effective October 15, 2015. 

Missouri SB 345  

The Governor of Missouri vetoed SB 345, which adopted NMLS’ Uniform State Test for mortgage loan originators. 

Nevada SB 306 

The Governor of Nevada signed into law SB 306, which relates to the foreclosure of homeowners’ association liens. The bill is effective October 1, 2015. 

Nevada AB 480 

The Governor of Nevada signed into law AB 480, relating to mortgage bankers, brokers, and agents. The bill requires the licensing of wholesale lenders and adjusts licensing fees. It is effective January 1, 2016.

Oklahoma SB 377 

The Governor of Oklahoma signed into law SB 377, amending the Oklahoma SAFE Mortgage Licensing Act. The bill is effective November 1, 2015.

Oregon Temporary Regulations 

The Oregon Department of Consumer and Business Services adopted a temporary rule relating to licensing fees for mortgage lending and mortgage loan originator licensees. 

Rhode Island Banking Regulation  

The Rhode Island Department of Business Regulation amended the rules governing lenders, loan brokers, and loan originators. Among other things, the regulation requires qualified individuals and branch managers to hold Rhode Island mortgage loan originator licenses. The regulation was effective June 11, 2015.

Rhode Island SB 502

The Governor of Rhode Island signed into law SB 502, which reduces the time after which a mortgage is unenforceable. The bill is effective June 17, 2016.

Rhode Island SB 969  

The Governor of Rhode Island signed into law SB 969 regarding solicitations of mortgage business based on information contained in a mortgage trigger lead. The bill is currently effective.

Rhode Island SB 241

The Governor of Rhode Island signed into law SB 241, amending Rhode Island’s Fair Housing Practices Act. The bill is currently effective.

South Carolina Mortgage Lender Regulations 

The South Carolina Board of Financial Institutions amended its rules governing lenders licensed under the Mortgage Lending Act. The stated purpose of the amendments is to bring the South Carolina Mortgage Lending Act into conformity with the federal SAFE Act and rules issued by the Consumer Financial Protection Bureau. The amended rules were effective as of June 26, 2015.

Texas HB 3316

The Governor of Texas signed into law HB 3316, which provides a thirty (30) day timeframe for recording a power of attorney for certain real property transactions. The bill is effective September 1, 2015 and applies to transactions entered into on or after that date.

Texas HB 2590

The Governor of Texas signed into law HB 2590, which provides increased penalties for fraud in connection with real estate transactions. The bill is effective September 1, 2015, and applies to violations that occur on or after September 1st.

Utah SB 296 

The Governor of Utah signed into law SB 296, which provides that it is unlawful in connection with a residential real-estate related transaction to discriminate against a person because of the person’s sexual orientation or gender identity. The bill was effective May 12, 2015. 

Washington SB 5299 

The Governor of Washington signed into law SB 5299 relating to residential mortgage lending and brokering, and mortgage fraud. The bill was effective July 26, 2015.

Wisconsin AB 24  

The Governor of Wisconsin signed into law AB 24, which relates to variable rate loans. The bill is currently effective.

Wisconsin AB 82 

The Governor of Wisconsin signed into law Assembly Bill 82, which relates to instruments filed or recorded with, and fees charged by, the register of deeds. This legislation was effective July 3, 2015.

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