Spring-Summer 2018 States In Brief

Alabama

The Governor of Alabama signed into law House Bill 90, which amends the Alabama Code relating to the right of redemption on residential property and notice requirements regarding foreclosure. The Bill was effective February 22, 2018.

Colorado

The Governor of Colorado signed into law House Bill 1174, which amends the mortgage loan originator licensing requirements pertaining to pre-licensing education. The Bill was effective August 8, 2018 and applies to license applications received on or after this date.

The Governor of Colorado also signed into law House Bill 1254, which modifies certain aspects of the foreclosure process. The Bill was effective August 8, 2018.

Florida

The Governor of Florida signed into law Senate Bill 512 relating to homestead waivers. The legislation provides language that may be used to waive spousal homestead rights though deeds. The legislation was effective July 1, 2018.

Georgia

The Georgia Department of Banking and Finance adopted final revisions to its rules. The rule amendments make changes to a number of provisions, including the servicing requirements. The revised rules were effective July 17, 2018.

Illinois

The Illinois General Assembly recently passed Illinois Senate Bill 2615 , relating to advertising under the Residential Mortgage License Act. The Bill became effective upon the governor’s signing on August 10, 2018.

Indiana

The Indiana Department of Financial Institutions released dollar amount changes under the Uniform Consumer Credit Code. These changes were effective July 1, 2018.

Iowa

The Governor of Iowa signed into law House Bill 2234 regarding foreclosure. The Bill shortens the periods of time for redeeming real property from foreclosure and delaying sale of foreclosed property, and relating to the statute of limitations period for executing judgments on claims for rent. The Bill was effective July 1, 2018.

The Governor of Iowa also signed into law House Bill 2232 regarding mortgage releases. The Bill was effective July 1, 2018.

Minnesota

The Governor of Minnesota signed into law House Bill 3158 modifying licensing requirements for mortgage loan originators. The new legislation addresses the written test and annual continuing education requirements, in addition to making several technical changes. The Bill was effective August 1, 2018.

Nebraska

The Governor of Nebraska signed into law Legislative Bill 750 regarding recording instruments and duties of secured creditors. The new legislation changes provisions relating to the recording of instruments and the rights and duties of secured creditors with respect to the Residential Mortgage Licensing Act, real estate conveyances, mortgages, trust deeds, and the Nebraska Security Instrument Satisfaction Act. The Bill was effective July 19, 2018.

New Hampshire

The Governor of New Hampshire signed into law Senate Bill 314 regarding the regulation of mortgage bankers, mortgage brokers, mortgage servicers, and mortgage originators. The Bill creates a de minimis licensing exemption for certain individuals who are not regularly engaged in the activities of a mortgage banker, mortgage broker, mortgage servicer or mortgage originator. The Bill was effective August 7, 2018.

Pennsylvania

The Pennsylvania Department of Banking and Securities adopted regulations in accordance with the recently passed amendments to the Pennsylvania Mortgage Licensing Act regarding mortgage servicing activity. The Department has adopted Chapter 59, related to mortgage servicing. These regulations were effective April 28, 2018.

Oregon

The Oregon Department of Consumer and Business Services/Finance and Securities Regulation Division revised existing rules and adopted additional regulations pertaining to the licensing of mortgage servicers. The new rules set application requirements for obtaining a license, requirements for corporate surety bonds and irrevocable letters of credit, and application and renewal fees, as well as clarify which entities are exempt from the licensing requirement. Additionally, the new rules make some non-substantive changes. The rules were effective April 17, 2018.

Rhode Island

The Governor of Rhode Island signed into law House Bill 7385 and its companion, Senate Bill 2270, regarding foreclosure mediation. The Bills extend the sunset provisions through July 1, 2023, in regard to a mediation conference prior to mortgage foreclosure, and limits the amount a HUD approved agency may receive for a mediation. The Bills are currently effective.

South Carolina

The South Carolina Department of Consumer Affairs released the dollar amounts under the Consumer Protection Code for the period of July 1, 2018 through June 30, 2020. Every two years, certain dollar amounts are adjusted under the Consumer Protection Code. Effective July 1, 2018, the prepayment penalty threshold is increased to $270,000.00. Therefore, beginning July 1, 2018, a prepayment penalty may not be charged for loans of $270,000.00 or less. There is no limit on prepayment penalties for loans of greater than $270,000.00.

Texas

The Finance Commission of Texas and the Texas Credit Union adopted amendments to the Texas Administrative Code regarding home equity lending. The amendments were effective March 29, 2018.

Utah

The Governor of Utah signed into law House Bill 108, which amends the Residential Mortgage Practices and Licensing Act. This Bill defines terms and makes technical changes. The Bill was effective May 8, 2018.

The Governor of Utah also signed into law House Bill 243, which amends provisions related to certain professions regulated by the Division of Real Estate. This Bill defines terms and makes minor changes to the Utah Residential Mortgage Practices and Licensing Act regarding licensure, record keeping requirements and investigations. Additionally, it makes technical changes and amends other provisions. The Bill was effective May 8, 2018.

The Utah Department of Commerce/Division of Real Estate adopted a new rule that provided an additional optional experience equivalency for licensed mortgage loan originators. The rule was effective July 13, 2018.

Washington

The Governor of Washington signed into law House Bill 2057 relating to the services and processes available when residential real property is abandoned or in foreclosure. The Bill was effective June 7, 2018.

West Virginia

The Governor of West Virginia signed into law House Bill 4285, which amends the West Virginia Safe Mortgage Licensing Act. The Bill revises the licensing requirements for mortgage loan originators by increasing the license application fee and revising the number of required hours for prelicensing and relicensing education, as well as the number of hours for annual continuing education. The Bill was effective May 31, 2018.

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