Winter 2013-2014 States In Brief

California AB 370

The Governor of California signed into law AB 370, which requires any operator of a website or online service that collects personally identifiable information on state residents to include new do-not-track disclosures in its privacy policy. This legislation was effective January 1, 2014. 

Colorado Regulations

The Colorado Department of Regulatory Agencies, Division of Real Estate has amended its rules regarding mortgage loan originators.  Specifically, these regulations repeal sections pertaining to certain disclosures and contracts, and mortgage loan originator and mortgage company duties to respond and provide requested documents for investigations.  The Division also repealed the rules regarding reasonable inquiry and tangible net benefit, and the rules regarding loan modifier licensure and the required use of a loan modification contract.  The Division has added rules regarding the National Mortgage Licensing System and Registry and call reports.  These amendments were effective November 14, 2013.

Georgia Rule Revisions

The Georgia Department of Banking and Finance adopted final revisions to its regulations under the Georgia Residential Mortgage Act.  These changes were effective November 29, 2013.

Maine Regulation Z-3

The Maine Department of Professional and Financial Regulation, Bureau of Financial Institutions and the Bureau of Consumer Credit Protection adopted Regulation Z-3 which requires creditors to comply with the federal regulations Z and M, including rules issued since July 21, 2011, the majority of which become effective in January 2014.  Regulation Z-3 was effective October 15, 2013.

Montana Regulations

The Montana Department of Administration, Division of Banking and Financial Institutions adopted revisions to its rules regarding the definition of origination of a mortgage loan and when an application is deemed abandoned.  The amendments were effective December 27, 2013.

New Jersey 2014 Maximum Principal Loan Amount for High-Cost Home Loans

The New Jersey Department of Banking and Insurance has released the 2014 maximum principal loan amount relative to high-cost home loans.  For 2014, the maximum principal loan amount of a loan that may be considered a high-cost home loan is $452,288.55.  The adjusted amount is effective for all completed applications received by the lender on or after January 1, 2014.

New York Emergency Subprime Calculation 

The New York Department of Financial Services announced a new extension of its emergency rule regarding subprime home loans which adjusts by 75 basis points the calculation used to trigger the definition of a subprime home loan in New York for most FHA-insured loans.  Accordingly, the extension began on December 29, 2013 and will expire 90 days thereafter.

Pennsylvania Base Figure Adjustment

The Pennsylvania Department of Banking announced the adjusted “base figure” for calendar year 2014.  Under the Loan Interest and Protection Law, certain restrictions and limitations are applicable to loans with a loan amount equal to or less than the base figure.  The adjusted base figure for 2014 is $237,474. This new base figure was effective January 1, 2014.

Texas Rule Revisions

The Finance Commission of Texas adopted amendments to its rules relating to residential mortgage loan originator licensing with the Office of Consumer Credit Commissioner under the Secure and Fair Enforcement for Mortgage Licensing Act.  These amendments were effective November 7, 2013. 

Utah Rule Revisions

The Utah Department of Commerce, Division of Real Estate adopted revisions to its rules regarding license renewal, reinstatement, and reapplication.  The amendments were effective November 20, 2013. 

Vermont 2014 Declared Rate

The Vermont Department of Banking, Insurance, Securities and Health Administration released the Declared Rate for 2014.  While Vermont does not have state high-cost loan limitations, a High Rate/High Point Disclosure is required for first mortgage loans where the borrower is expected to be charged more than four points and/or the interest rate (note rate) is more than three percent over the “Declared Rate.”  As determined by the Department, the Declared Rate for 2014 is 3.6%. 

Washington Regulations

The Washington Department of  Financial Institutions, Division of Consumer Services amended its rules interpreting the Mortgage Broker Practices Act.  The amended rules were effective January 1, 2014 and clarify certain licensing requirements and practices under the Act.

Posted in Newsletters, States In Brief


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