Spring 2016 States In Brief

Colorado

The Governor of Colorado signed into law Senate Bill 14, repealing certain disclosure requirements. The bill is currently effective.

The Colorado Division of Real Estate adopted regulations revising the education and licensing requirements for mortgage loan originators. The revised rules were effective March 1, 2016.

Florida

The Governor of Florida signed into law House Bill 145, which in part, reduces the time limit for a mortgagee or assignee to cancel a mortgage. The bill is effective July 1, 2016.

Indiana

The Governor of Indiana signed into law Senate Bill 372, relating to the anti-deficiency disclosure on the Closing Disclosure required by the federal TILA-RESPA Integrated Disclosure Rule (“TRID”). The bill was effective March 21, 2016. The Governor also signed into law House Bill 1222, regarding first mortgage holder’s notification rights pertaining to homeowner and condominium association governing documents, and Senate Bill 183, which adds a new section related to properties in foreclosure proceedings to the Indiana Code. The bills are effective July 1, 2016 and July 9, 2016 respectively .

The Indiana Department of Financial Institutions adopted an emergency rule related to pre-licensing education requirements for mortgage loan originators. Specifically, the regulation addresses the steps to be taken if an individual fails to obtain a mortgage loan originator license after completing the statutory education requirements, or fails to timely renew a lapsed license. This regulation was effective March 1, 2016.

Kansas

The Governor of Kansas signed into law Senate Bill 369, implementing changes to a number of sections related to the Kansas Mortgage Business Act and the State Bank Commissioner. The bill is effective July 1, 2016.

Michigan

The Governor of Michigan signed into law Senate Bill 578, relating to the Consumer Mortgage Protection Act. Specifically, this bill repeals the requirement to provide an applicant for a mortgage loan a copy of the “Borrower’s Bill of Rights” and eliminates the requirement to provide a credit counseling notice. The bill is effective June 13, 2016.

New Jersey

The New Jersey Department of Banking and Insurance issued a bulletin adjusting the maximum principal amount for a loan to be considered “high cost” under New Jersey’s Home Ownership Security Act of 2002. The adjustment is effective for all completed applications on loans received by the lender on or after January 1, 2016.

North Carolina

The North Carolina Commissioner of Banks sent a letter to the Mortgage Bankers Association of the Carolinas relating to prelicensing education and testing requirements for federally registered mortgage loan originators becoming licensed under North Carolina’s Secure and Fair Enforcement Mortgage Licensing Act.

Utah

The Governor of Utah signed into law House Bill 177, revising an exemption under Utah’s Mortgage Lending and Servicing Act. The bill is effective May 10, 2016.

The Governor of Utah also signed into law Senate Bill 22, which enacts and amends provisions related to foreclosure of residential rental property. Specifically, this bill addresses new owner responsibilities and trustee obligations relating to foreclosure of residential rental property. The bill is effective May 10, 2016.

Virginia

The Governor of Virginia signed into law House Bill 123 regarding mortgage loan application disclosures and House Bill 124 regarding license renewal and expirations for licensed mortgage lenders and brokers. The Governor also signed into law House Bill 125, which pertains to inactive mortgage loan originator licenses and House Bill 968 regarding license posting requirements for licensed mortgage lenders and brokers. These bills are effective July 1, 2016.

Washington

The Governor of Washington signed into law Senate Bill 6282, extending the current one dollar surcharge charged by the county auditor at the recording of each deed of trust. The surcharge was scheduled to expire on
June 30, 2016, but will now continue through June 30, 2021.

The Washington Department of Financial Institutions, Division of Consumer Services amended the Washington Administrative Code interpreting the Mortgage Broker Practices Act, the Consumer Loan Act, and the mortgage lending fraud prosecution account to implement changes to the law, aid the regulated industries by having consistent rules within the mortgage marketplace, and to make technical changes for clarity and consistency. The amended rules were effective April 30, 2016.

West Virginia

The Governor of West Virginia signed into law Senate Bill 311, which makes permanent the exception allowing mortgage modifications or refinancing loans to exceed the fair market value of the property for some government and state programs. The bill is effective June 10, 2016.

The Governor of West Virginia also signed into law Senate Bill 614, which adds clarity to the definition of unconscionability in the context of consumer credit transactions and provides limits on what a secured lender may recover from a consumer borrower upon default. The bill is effective June 8, 2016.

Wyoming

The Governor of Wyoming signed into law HB 107, adopting the provisions of the Uniform Real Property Electronic Recording Act. The Act is effective January 1, 2017.

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