Spring 2021 States In Brief

Arkansas

The governor of Arkansas signed into law Senate Bill 149, amending the Arkansas’s Fair Mortgage Lending Act, which governs the licensing of mortgage bankers, brokers, servicers, and loan officers in Arkansas. The bill is effective on
July 30, 2021.

Maryland

The Maryland Commissioner of Financial Regulation adopted a regulation specifying the conditions under which certain employees of licensed entities, including mortgage lenders, will be permitted to work remotely. The regulation was initially adopted on an emergency basis through May 3, 2021. Effective April 19, 2021, the regulation has been permanently adopted and will be codified at COMAR 09.03.02.08.

The governor of Maryland signed Senate Bill 251. The bill transitions certain procedures for mortgage lender licensees to the Nationwide Mortgage Licensing System (“NMLS”), requires licensees to post their NMLS unique identifiers at each licensed location, and requires licensees to display their unique identifiers on websites, social media profiles, and publicly accessible software. Senate Bill 251 is effective October 1, 2021.

New Jersey

On February 24, 2021, the New Jersey Department of Banking and Insurance (“Department”) signed 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 1st, 2021.

On March 15, 2021, the governor of New Jersey signed Assembly Bill 1063, which revises the Notice of Option to Participate in Foreclosure Mediation Program. This requirement is effective September 1, 2021.

New Mexico

The governor of New Mexico signed into law Senate Bill 365, which revises certain restrictions on adjustable-rate mortgages. The bill is effective June 18, 2021.

North Dakota

The governor of North Dakota signed into law Senate Bill 2292. The bill modifies certain provisions of North Dakota law relating to mortgage modifications and extensions. These changes are effective August 1, 2021.

Ohio

The Ohio Division of Financial Institutions recently released the prepayment penalty adjustment for 2021. The dollar amount to which the prepayment penalty restriction applies is $93,119 for 2021. Therefore, effective January 1, 2021, a prepayment penalty is prohibited for a prepayment or refinancing of a residential mortgage loan of less than $93,119.

Oklahoma

The Oklahoma Department of Consumer Credit released changes in dollar amounts under the Uniform Consumer Credit Code. Effective July 1, 2021, the maximum late charge for consumer loans is not less than $5.00 and not more than the greater of 5% or $27.00 (up $0.50 from the current amount of $26.50) of an installment delinquent for more than 10 days.

Utah

On March 22, 2021, the governor of Utah signed Senate Bill 197, which require lenders and servicers to mail a recorded copy of a Cancellation of Default. This requirement is effective May 5, 2021.

Virginia

On February 25, 2021, Virginia’s governor signed House Bill 1882 regarding language required to ensure certain refinance mortgages retain priority over subordinate mortgages. These changes will be effective July 1, 2021.

Washington

Washington’s governor signed into law Senate Bill 5077, which authorizes mortgage loan originators to work remotely from their residences. Senate Bill 5077 is effective July 25, 2021.

Wyoming

The governor of Wyoming signed into law House Bill 8, which substantially revises Wyoming’s Consumer Credit Code. The bill is effective July 1, 2021.

Posted in Newsletters, States In Brief, Uncategorized

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