Fall 2018-Winter 2019 States In Brief

California

The Governor of California signed into law Senate Bill 818 and Senate Bill 1201, which reinstates the Homeowner Bill of Rights. The legislation was effective January 1, 2019.

Colorado

The Colorado Division of Real Estate revised and amended several regulations related to the pre-licensing education requirements for mortgage loan originators. The rules were effective November 14, 2018.

Connecticut

The Governor of Connecticut signed into law Senate Bill 391 regarding the foreclosure mediation process. The Bill eliminates the requirement that a mortgagor represented by counsel attend the first foreclosure mediation session in person. These provisions were effective October 1, 2018.

The Governor of Connecticut signed into law House Bill 5490 regarding Consumer Credit Licenses. The Bill makes numerous changes to the banking statutes that generally expand the banking commissioner’s authority and standardize various requirements across several license types including mortgage lenders, servicers and lead generators. These provisions were effective October 1, 2018.

Delaware

The Governor of Delaware signed into law House Bill 353. The Bill makes changes to how mortgagees or assignees of mortgages must provide notice of an address change from the address provided in any mortgage or assignment of mortgage. The Bill was effective September 4, 2018.

Florida

The Florida Department of Financial Services revised its regulations allowing for a waiver of mortgage loan originator licensee fees for military personnel and their spouses. The regulations amend existing rules to adopt a form relating to military fee waiver procedures for military personnel, veterans, and spouses seeking a loan originator license or renewal of a loan originator license. The revised regulations were effective September 25, 2018.

Illinois

The Governor of Illinois signed into law House Bill 4404, regarding the regulation of independent loan processing. The Bill was effective August 14, 2018.

Maryland

Maryland Senate Bill 566 and companion House Bill 1511, which amend Maryland’s rules concerning mortgage broker finder’s fees, became law without the Governor’s signature. These revisions place a limit on the finder’s fee a broker may charge on the same property more than once within a 24-month period. This legislation was effective October 1, 2018.

The Governor of Maryland signed into law Senate Bill 755, which amends Maryland’s provisions regarding the establishment of escrow accounts for utility assessments. These revisions authorize lending institutions to create an escrow account solely for the payment of water and sewer facilities assessments. This legislation was effective October 1, 2018.

The Governor of Maryland signed into law House Bill 1634, which enacts Maryland’s Financial Consumer Protection Act of 2018. This Act expands the Maryland Consumer Protection Act to include “abusive practices.” The Act was effective October 1, 2018.

Pennsylvania

The Pennsylvania Department of Banking announced the adjusted “base figure” for calendar year 2019. Under the Loan Interest and Protection Law, certain disclosure requirements, fee restrictions, and other limitations are applicable to loans with a loan amount equal to or less than the base figure. The adjusted base figure for 2019 is $256,023. This new base figure is effective January 1, 2019.

Rhode Island

The Rhode Island Division of Banking has recently amended the rules governing lenders, loan brokers, small loan lenders, third-party loan servicers and mortgage loan originators. The amendments were effective as of January 1, 2019.

Vermont

The Vermont Department of Financial Regulation, Banking Division revised its regulations related to the form, content, and timing of residential real estate mortgage loan commitment letters. The Regulations were effective October 1, 2018.

The Vermont Commissioner of Taxes released the “declared rate” for 2019. While Vermont does not have state high-cost loan limitations, a high rate/high point disclosure is required for first mortgage loans where the borrower is expected to be charged more than four points and/or the interest rate (note rate) is more than three percent over the “declared rate.” The declared rate for 2019 is 4.75%. The new rate is effective January 1, 2019.

Washington

The Washington Department of Financial Institutions amended its regulations under the Consumer Loan Act regarding its mortgage servicing requirements. The amendments were effective September 1, 2018.

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