Arkansas Amendments to Fair Lending Act
The Arkansas Securities Department revised its rules regarding Qualifications for Licensure; Licensee Duties; Recordkeeping; Prohibited Activities and Practice and Procedure. The amendments were effective February 9, 2014.
Georgia HB 750
The Governor of Georgia signed into law HB 750, which relates to exemptions from licensing requirements of mortgage brokers and mortgage lenders, and provides for an exemption to mortgage loan originator licensing requirements for employees of certain nonprofit corporations. This legislation is currently effective.
Illinois Residential Mortgage License Act Regulations
The Illinois Division of Banking amended the Fee section of the Residential Mortgage License Act. The amendments also require loan brokerage agreements to contain the name and NMLS unique identifier of a mortgage loan originator assisting the licensee in performing services for the borrower. These amendments were effective December 27, 2013.
Iowa HB 2324
The Governor of Iowa signed into law HB 2324, which revises provisions applicable to residential real estate loan charges and monetary limits specified in the consumer credit code and modifies several provisions relating to loan charge limitations applicable to loans secured by owner-occupied property. The legislation is effective July 1, 2014.
Kentucky HB 206
The Governor of Kentucky signed into law HB 206, which provides that a loan modification resulting in a lower interest rate is secured by the original mortgage. This legislation is effective July 15, 2014.
Maine SB 678
The Legislature of Maine passed SB 678 regarding corrections to the Maine consumer credit code to facilitate the multistate licensing process. This bill became law without the Governor’s signature and will be effective ninety (90) days following sine die adjournment, which is expected to be in early May.
Maryland SB 1091
The Maryland legislature passed SB 1091, which requires the Commissioner of Financial Regulation to waive, as applicable, the State criminal history records check of a licensure applicant who, within 45 days before the date of application for a mortgage loan originator license, was employed as a registered mortgage loan originator. This legislation is effective October 1, 2014.
Mississippi SB 2538
The Governor of Mississippi signed into law SB 2538, regarding appraisal management company registration. This bill is currently effective.
Missouri Regulations
The Missouri Department of Insurance, Financial Institutions and Professional Registration adopted regulations concerning the Missouri residential mortgage loan broker license. Specifically, this regulation provides that an NMLS account is required prior to initially applying for or renewing a Missouri residential mortgage loan broker license. The regulations are effective April 30, 2014.
New Mexico SB 110
The Governor of New Mexico signed into law SB 110 which creates new provisions governing appraisal management companies. The legislation is effective May 21, 2014.
New Jersey AB 347
The New Jersey legislature passed AB 347 allowing municipalities to require mortgage lenders to maintain vacant residential properties during foreclosure. This legislation becomes effective 60 after the governor signs the bill.
New York Subprime Home Loan Regulations
The New York Department of Financial Services issued regulations defining certain terms relative to subprime home loans. Specifically, the regulations define the terms “week”, “good faith estimate” and “commitment.” The regulations were effective March 19, 2014.
The New York Department of Financial Services also extended its emergency regulation regarding the subprime thresholds for most FHA loans until June 21, 2014.
South Dakota SB 68
The Governor of South Dakota signed into law SB 68 which adopts the Uniform Real Property Electronic Recording Act. This legislation is effective July 1, 2014.
Texas Supreme Court Ruling Clarifying Texas Home Equity Loan Fee Limitation
In 2013, the Texas Supreme Court issued a ruling regarding certain home equity interpretive regulations, including regulations defining “interest” and the use of powers of attorney. The Supreme Court recently issued a supplemental opinion on motion for rehearing which further clarifies the Court’s position regarding the treatment of per diem interest, discount points and the use of powers of attorney.
Utah S.B. 79
The Governor of Utah signed into law Utah SB 79, which enacts provisions related to the Uniform Real Property Electronic Recording Act. Specifically, this legislation provides for the validity of and recording of electronic documents. This legislation takes effect on July 1, 2015.
Virginia HB 762
The Governor of Virginia signed into law HB 762 relating to the regulation of appraisal management companies. Specifically, this legislation provides the Real Estate Appraiser Board with the power to do all things necessary to effectuate the provisions of Chapter 20.2 of Title 54.1 (Real Estate Appraiser Management Companies) and requires persons or entities engaged in business as an AMC to obtain a license from the Board. Under this legislation, the required bond amount for each applicant for licensure increased from $25,000 to $100,000. This legislation will be effective July 1, 2014.
Virginia SB 118
The Governor of Virginia signed into law SB 118 relating to transitional mortgage loan originators and licensing. Specifically, this legislation authorizes the State Corporation Commission to issue a transitional mortgage loan originator license to an individual who either has an active license to originate mortgage loans pursuant to the laws of another state or a U.S. territory and satisfies certain registration requirements or was formerly a registered loan originator and is in the process of meeting the requirements necessary to obtain a mortgage loan originator license. The legislation will be effective July 1, 2014.
Virginia HB 954
The Governor of Virginia signed into law HB 954 relating to transitional mortgage loan originators and licensing. This bill is identical to SB 118. Specifically, this legislation authorizes the State Corporation Commission to issue a transitional mortgage loan originator license to an individual who either has an active license to originate mortgage loans pursuant to the laws of another state or a U.S. territory and satisfies certain registration requirements or was formerly a registered loan originator and is in the process of meeting the requirements necessary to obtain a mortgage loan originator license. The legislation will be effective July 1, 2014.
Virginia SB 116
The Governor of Virginia signed into law SB 116 relating to correcting errors in deeds, deeds of trust, and mortgages. Specifically, this legislation authorizes an attorney to record a corrective affidavit to correct an obvious description error contained in a recorded deed, deed of trust, or mortgage. The bill will be effective July 1, 2014.
Washington HB 2723
The Governor of Washington signed into law HB 2723 amending certain provisions of Washington’s Foreclosure Fairness Act. Among other things, HB 2723 amends the Act to provide that the location of the pre-foreclosure meeting and mediation is the county in which the property is located, rather than where the borrower resides; requires registered or certified mail, return receipt requested, in addition to first-class mail for notices of pre-foreclosure options; modifies the foreclosure loss mitigation form; and requires the beneficiary to provide documentation for mediation purposes relative to any investor restriction that prohibits the beneficiary from implementing a modification. This legislation will be effective June 12, 2014.
Washington SB 6134
The Governor of Washington signed into law SB 6134 relating to clarifying the statute of limitations for enforcement actions, sharing of information with federal and state regulatory authorities, and requiring call reports for non-depository institutions regulated by the Department of Financial Institutions. This legislation will be effective June 12, 2014.