Summer 2022 States In Brief

Arizona

Arizona passed House Bill 2612, which updates verbiage in the Arizona Mortgage Brokers, Mortgage Bankers, and Loan Originators Act. House Bill 2612 is effective September 23, 2022.

Florida

Florida amended its regulation implementing Florida’s statute on excise tax. The regulation became effective May 23, 2022.

Georgia

The Governor signed Georgia Senate Bill 470, which makes important changes to the Georgia Residential Mortgage Act to align more closely with other states’ licensing laws, including revisions to the scope of Georgia’s felony prohibition. Senate Bill 470 became effective on May 2, 2022.

Georgia House Bill 891 modifies the licensing exemption for natural persons under an exclusive written independent contract agreement with a licensed mortgage broker. The Bill was effective July 1, 2022.

The Georgia Department of Banking and Finance finalized the proposed rules issued on June 1, 2022. The proposed rules applicable to mortgage licensees were adopted with no changes. The rules are final and were effective July 27, 2022.

Georgia passed House Bill 891, which among other things, updated the licensing exemptions applicable to mortgage licensees under the Georgia Residential Mortgage Act. The Bill was effective July 1, 2022.

Hawaii

Hawaii passed Senate Bill 1105, which amends Hawaii’s SAFE Act relating to the mortgage loan recovery fund. Senate Bill 1105 was effective July 1, 2022.

Hawaii enacted House Bill 2115, which modifies the Mortgage Servicers Act. The Bill was effective
July 1, 2022.

Illinois

The Illinois Department of Financial and Professional Regulation adopted rules to implement the Predatory Loan Prevention Act. The rules were effective August 1, 2022.

Indiana

Indiana House Bill 1092 creates a new written disclosure for certain loan brokers. The Bill was effective July 1, 2022.

Kansas

Kansas passed House Bill 2568, which updates the Mortgage Business Act related to conducting mortgage business from a remote location, license and registration renewals, and surety bond requirements. The Bill was effective July 1, 2022.

Kentucky

Kentucky House Bill 643 amended the Mortgage Loan Companies and Brokers Act to, most notably, permit employees to work from an alternate “remote” work location. The Bill was effective
July 14, 2022.

Maryland

Maryland provided an updated version of its Net Tangible Benefit Worksheet dated December 27, 2021, which is available on the Maryland Commissioner of Financial Regulation’s webpage.

Massachusetts

Massachusetts Office of Consumer Affairs and Business Regulations/ Division of Banks adopted amendments to its mortgage regulations that implement the Mortgage Licensing Act. These amendments were effective May 27, 2022.

Oklahoma

The Oklahoma Department of Consumer Credit released changes in dollar amounts under the Uniform Consumer Credit Code. Certain amounts are subject to change every year. Effective July 1, 2022, the maximum late charge for consumer loans is not less than $5.00 and not more than the greater of 5% or $29.00 (up $2 from the current amount of $27) of an installment delinquent for more than 10 days.

Rhode Island

The Rhode Island Department of Business Regulations adopted rules allowing employees of a licensee to work from a remote location. These rules essentially codify the Department’s guidance originally issued in March 2020 to allow mortgage loan originators to work from home. The new rule became effective June 27, 2022.

South Carolina

The South Carolina Department of Consumer Affairs released the dollar amounts under the Consumer Protection Code for the period of July 1, 2022 to June 30, 2024.

South Dakota

South Dakota passed House Bill 1271, which permits employees of licensees under the Mortgage Lender Business Act to work from a remote location. House Bill 1271 was effective July 1, 2022.

Tennessee

Tennessee passed House Bill 1668, which amends the requirement to include the license number on each mortgage loan application. The Bill was effective July 1, 2022.

Tennessee passed House Bill 2304, which permits employees of a licensee to work from a remote location under certain conditions. The Bill was effective July 1, 2022.

In 2021, Tennessee renumbered the code section applicable to deficiency judgments. The section was renumbered from Tennessee Code Section 35-5-118 to Section 35-5-117. No substantive updates were made to the code section.

Utah

Utah enacted House Bill 69, which updates, among other things, licensing provisions under the Residential Mortgage Practices and Licensing Act. These updates were effective May 4, 2022.

Vermont

Vermont’s Department of Financial Regulation issued an Order temporarily suspending the disclosure requirement for certain “high-rate” mortgage loans in Vermont until January 1, 2023.

Virginia

Virginia passed House Bill 1153, which modifies the “dual capacity” disclosure requirement. The Bill was effective July 1, 2022.

Multi-State

Florida, Indiana, Nebraska and Tennessee passed legislation regarding the transition away from the London Interbank Offered Rate. The effective dates of the legislation varies.

Posted in Newsletters, States In Brief

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