Fall 2015 States In Brief

California DBO Provides Translated Loan Estimates

The California Department of Business Oversight prepared translated versions of the Loan Estimate required by the TILA/RESPA Integrated Disclosure Rule (“TRID”). California requires a lender who negotiates in Spanish, Chinese, Tagalog, Vietnamese, or Korean to provide the borrower a form in the appropriate language summarizing the terms of the mortgage loan. The Department of Business Oversight is required to provide a form for this disclosure in each of these languages for use by lenders.

California Mortgage Loan Originator Regulations

The California Department of Business Oversight amended the rules governing licensing of mortgage loan originators, adopting the Uniform State Test for licensing and requiring mortgage loan originator applicants to complete two hours of training on California law and regulations, in addition to the current required educational components. To renew a license, mortgage loan originators must complete one hour of training on California law in addition to the current training and education requirements. The amended rules were effective August 19, 2015.

California Bureau Of Real Estate Clarifies The Effect of TRID On The Mortgage Loan Origination Disclosure Statement     

The California Bureau of Real Estate issued an advisory relating to the effect that the TILA-RESPA Integrated Disclosure Rule (“TRID”) will have on certain disclosure requirements applying to mortgage brokers.

Colorado Revises Disclosure Requirements for Consistency with TRID

The Colorado Division of Real Estate adopted regulations amending Colorado’s mortgage disclosure requirements. The purpose of the amendments is to align Colorado’s requirements with the requirements of the TILA-RESPA Integrated Disclosures Rule (“TRID”). The adopted regulations were effective October 3, 2015.

Illinois HB 2627 

The Governor of Illinois signed into law HB 2627, which amends Illinois’ definition of a “high risk home loan” for dwellings that are personal property. The bill is currently effective. 

Illinois SB 1942

The Governor of Illinois signed into law SB 1942, which incorporates federal loan amount thresholds into the high cost home loan provisions. The bill is currently effective.

Maryland Commissioner of Financial Regulation Issues Guidance On Compliance With Housing Counseling Notice Requirements

The Maryland Commissioner of Financial Regulation issued an advisory relating to compliance with state and federal requirements to provide housing counseling information to borrowers. 

Massachusetts Division of Banks Finalizes Regulations Implementing Flood Insurance Disclosure Requirement

The Massachusetts Office of Consumer Affairs and Business Regulation, Division of Banks issued regulations which prohibit creditors from imposing certain requirements relating to flood insurance and requires creditors to provide a disclosure if they require borrowers to maintain flood insurance. The regulations were effective September 11, 2015. 

Missouri SB 345 

The Missouri legislature overrode the Governor’s veto and enacted SB 345, which adopted the Nationwide Mortgage Licensing System & Registry’s Uniform State Test for mortgage loan originators. This bill was effective October 16, 2015.

Montana Regulations Reducing Renewal Fees

The Montana Department of Administration reduced the license renewal fees for mortgage brokers and mortgage loan originators for 2016. The reduction applies only to renewals for 2016. The Department says that it will assess next year whether the fees should be reduced beyond 2016.

New Jersey AB 4013  

The Governor of New Jersey legislature signed into law AB 4013, relating to mortgage guaranty insurance. The bill was effective on November 9, 2015, and applies to policies issued on or after its effective date. 

North Carolina HB 126    

The Governor of North Carolina signed into law HB126, which requires loan processing and underwriting companies to register with the North Carolina Commissioner of Banks. The bill was effective November 1, 2015.

Pennsylvania Regulations Regarding Cybersecurity Programs

The Pennsylvania Department of Banking and Securities issued a letter to all state-licensed and registered financial services companies encouraging them to develop cybersecurity-attack prevention and mitigation plans. The letter does not establish specific, binding requirements, but it does say that the Department believes it is vital for businesses and institutions to implement continuity plans relating to cyber-attacks.

Tennessee SB 172

The Governor of Tennessee signed into law SB 172, which provides that no person who lends money or extends credit secured by real property may require that the debtor procure insurance for the protection of the property for an amount that exceeds the replacement cost of the structures existing on the secured property at the time of the loan or, in the case of a construction or improvement loan, insurance that exceeds the replacement value the structures are expected to have upon completion of the construction or improvements. The bill is currently effective.

Texas Regulations Requiring Addendum To TRID Closing Disclosure 

The Texas Department of Insurance adopted a rule requiring settlement agents to prepare an addendum for use with the Closing Disclosure required by the TILA-RESPA Integrated Disclosures Rule (“TRID”). The form was required as of October 3, 2015. 

Utah Amends Residential Mortgage Practices and Licensing Rules

The Utah Division of Real Estate amended its rules relating to residential mortgage practices and licensing, which apply to mortgage entities and mortgage loan originators licensed in Utah. The amendments were adopted October 1, 2015.

Posted in Newsletters, States In Brief


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