Summer 2019 States In Brief

Arkansas

The Governor of Arkansas signed into law Senate Bill 188 which revises Arkansas’ Fair Mortgage Lending Act. The revisions amend certain provisions of the FMLA to comply with recent developments in federal law; revises the definition of exempt person; defines transitional loan officer and transitional loan officer license; and revises provisions relating to licensing requirements. This legislation was effective July 23, 2019.

Connecticut

Connecticut passed Senate Bill 320, concerning real estate closings. The Bill requires all real estate closings in the state of Connecticut be conducted by an attorney. The Bill is effective October 1, 2019.

Georgia

The Georgia Department of Banking and Finance adopted amendments to its regulations regarding foreclosure disclosure, employee records, and administrative fines. The amendments were effective
July 29, 2019.

The Governor of Georgia signed into law House Bill 288 relating to real estate filing fees. The Bill revises the fees that the clerks of the superior courts can charge for filing real property documents and provides for a flat fee in most instances rather than a fee per page. The Bill is effective January 1, 2020.

Hawaii

Hawaii’s Governor signed into law House Bill 989, which clarifies that documents in conjunction with mortgage servicer licensing must be submitted through NMLS and authorizes the Commissioner of Financial Institutions to issue cease and desist orders against licensees and unlicensed persons and to enter into consent orders. These changes were effective June 7, 2019.

Hawaii’s Governor signed House Bill 988, which adds a new part to Chapter 454F of the Hawaii Revised Statutes to implement Section 106 of the Economic Growth, Regulatory Relief, and Consumer Protection Act which provides temporary authority to certain loan originators. The Bill is effective
November 24, 2019.

Illinois

The Illinois Department of Financial and Professional Regulation adopted final amendments to the regulations implementing the Illinois Residential Mortgage License Act. The amendments supplement legislative changes regarding independent loan processor licensing and advertising. The amendments were effective May 10, 2019.

Indiana

The Governor of Indiana signed into law House Bill 1447, which amends the Indiana Code regarding the licensing of mortgage lenders. The Bill makes changes to the procedure for removing an officer, director, officer, or manager of a creditor. The Bill was effective on July 1, 2019.

The Governor of Indiana signed into law House Bill 1440 which amends the Indiana Code regarding loan brokers. The new legislation reorganizes current provisions regulating loan brokers and moves the reorganized provisions into a new article. The Bill was effective July 1, 2019.

Kentucky

The Kentucky Department of Financial Institutions revised its regulations applicable to mortgage loan companies and mortgage loan brokers related to disclosure on the closing disclosure and mortgage loan processor background checks. These amendments were effective May 3, 2019.
Maine
Maine passed Senate Bill 415, which creates a mortgage servicer duty of good faith requiring mortgage servicers to act honest in fact and observe reasonable commercial standards of fair dealing. The Bill is effective September 19, 2019.
Maine also passed House Bill 1020 and House Bill 671, amending its mortgage foreclosure laws. Specifically, the Bills amend provisions relating to timely completion of foreclosure and the notice of the right to cure. House Bill 1020 and House Bill 671 are effective September 19, 2019.

Maryland

Maryland House Bill 425, which amends the rules concerning the statute of limitations for civil actions related to unfair, abusive, or deceptive trade practices filed against a mortgage servicer, became law without the Governor’s signature. The changes take effect October 1, 2019.

The Governor of Maryland signed into law House Bill 61, which amends Maryland’s rules concerning mortgage lenders, loan servicers, and loan originators. These revisions alter and clarify tangible net worth requirements and criteria for mortgage lenders, servicers, and originators; repeal a provision that requires licensees to reapply for a license should a location change request not be filed in a timely manner with the OCFR; extend examination cycle periods; and amend certain expiration provisions related to mortgage loan originator licensees. These changes take effect October 1, 2019.

Minnesota

The Governor of Minnesota signed into law House File 1840, which repeals the specific definition of a “subprime loan” from the Minnesota Residential Originator and Servicer Licensing Act and amends related sections. These changes were effective July 1, 2019.

Montana

The Governor of Montana signed into law House Bill 107 modifying licensing requirements for mortgage loan originators. The new legislation adds a new definition for service providers, provides capital requirements for mortgage servicers, net worth requirements for mortgage originators licensed in the state, revises designated manager and branch office requirements, revises surety bond requirements, and provides that a failure to meet or maintain the outlined standards could result in a license application denial or the suspension or revocation of a current license. The Bill is effective October 1, 2019.

Multi-State

Maine, Nevada, New York and North Dakota have enacted data security and consumer privacy laws. Massachusetts, New Jersey and Pennsylvania have privacy laws pending in their 2019 legislative sessions.

Nevada

The Nevada Real Estate Division revised certain sections of the Nevada Administrative Code applicable to mortgage brokers. The amendments relate to requirements for licensure by endorsement, continuing education requirements and certain monthly reports. The amendments were effective June 26, 2019.

The Nevada Real Estate Division revised certain sections of the Nevada Administrative Code applicable to mortgage servicers. The amendments relate to requirements for licensure by endorsement. The amendments were effective June 26, 2019.

New Hampshire

The Governor of New Hampshire signed into law House Bill 402 repealing the requirement that a mortgagor post at a construction jobsite the anticipated funding date for the construction mortgage requisition. The Bill was effective August 4, 2019.

New Jersey

The Governor of New Jersey signed into law Assembly Bill 5001, revising the statute of limitations for residential mortgage foreclosures. The Bill reduces the statute of limitations in residential mortgage foreclosure actions from 20 years to six years from the date when the debtor first defaulted, for situations in which the date of default is used as the method to determine when the statute of limitations has expired. The Bill was effective April 29, 2019 and applies to all residential mortgages executed on or after the effective date.

The Governor of New Jersey signed into law Senate Bill 3416, concerning licensing and other requirements for residential mortgage lending under New Jersey’s Residential Mortgage Lending Act. The Bill clarifies that the State Residential Mortgage Lending Act applies to certain out of state persons and entities involved in residential mortgage lending in the state. The Bill was effective April 29, 2019.

The Governor of New Jersey signed into law Assembly Bill 4999 requiring the filing of certain creditor contact information with a residential mortgage foreclosure complaint and pending legal action. The Bill was effective July 28, 2019.

The Governor of New Jersey signed into law Assembly Bill 4997 concerning licensing and other requirements for residential mortgage servicing under New Jersey’s Mortgage Servicers Licensing Act. The Bill was effective July 28, 2019.

The Governor of New Jersey signed into law Senate Bill 3411 concerning residential mortgage foreclosure. The Bill requires the notice of intention to foreclose be filed no more than 180 days prior to commencing foreclosure and limits reinstatements of dismissed mortgage foreclosure actions. The Bill was effective August 1, 2019.

The Governor of New Jersey signed into law Assembly Bill 5096 concerning Superstorm Sandy victims. The Bill extends foreclosure protection and mortgage relief programs for certain Superstorm Sandy impacted homeowners from 2021 to 2022. The Bill was effective June 21, 2019.

North Dakota

The Governor of North Dakota signed into law Senate Bill 2205 related to abandoned property and the foreclosure of real estate. The Bill clarifies the foreclosure process and right of redemption where a property has been abandoned. The Bill was effective August 1, 2019.

Oklahoma

The Governor of Oklahoma signed into law House Bill 1373, amending the Oklahoma SAFE Mortgage Licensing Act. The Bill makes changes to the criteria by which a license can be denied as it relates to past criminal histories, in order to allow more potential applicants to qualify for licensure. The Bill is effective November 1, 2019.

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. The maximum late charge for consumer loans is not less than $5.00 and not more than the greater of $26.00 (for 2019) or 5% of an installment delinquent for more than 10 days. This change was effective July 1, 2019.

Oregon

The Oregon Department of Consumer and Business Services/ Finance and Securities Regulation adopted 2019 OR Regulation Text 42981 concerning an update to the phone number listed for the consumer complaint submissions disclosure. The update was adopted on July 15, 2019 and was effective immediately.
The Governor of Oregon signed into law House Bill 2459, which provides a procedure for a lien holder to request information from another lien holder. House Bill 2459 is effective January 1, 2020.

Utah

The Governor of Utah signed into law Senate Bill 140, which amends the Residential Mortgage Practices and Licensing Act. This Bill establishes the requirements to temporarily authorize individuals to act as mortgage loan originators. The Bill was effective May 14, 2019.
Virginia
The Governor of Virginia signed into law House Bill 2251 relating to providing temporary authority to mortgage loan originators. The Bill was effective July 1, 2019.

Wyoming

The Governor of Wyoming signed into law House Bill 290, modifying the provisions related to the sale and redemption of realty sold under mortgage foreclosure or execution and creating a purchaser’s right of entry. The Bill was effective July 1, 2019.

Posted in Newsletters, States In Brief, Uncategorized

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