California CFLL Regulations
The California Department of Business Oversight adopted regulations clarifying the scope of the exemptions in the California Finance Lenders Law and the Residential Mortgage Lending Act for depository institutions.
Connecticut Department of Banking Memorandum
The Connecticut Department of Banking issued a memorandum relating to individual loan processors and underwriters. The letter clarifies the Department’s expectations with regard to such individuals.
Florida Regulations Governing Mortgage Lenders, Brokers and Originators
The Florida Department of Financial Services revised its regulations governing mortgage loan originators, mortgage lenders and mortgage brokers. Most of the revisions are non-substantive; they update references to certain Nationwide Mortgage Licensing System forms, correct spelling and typographical errors from previous versions of the regulations, and remove references to statutory provisions that have been repealed or revised. There are some substantive changes. The revised regulations were effective November 9, 2015.
The Florida Department of Financial Services revised additional regulations governing mortgage loan originators, mortgage lenders and mortgage brokers regarding lock-in agreements and renewal applications. The revised regulations were effective November 30, 2015.
Florida Regulations Regarding Settlement Agents
The Florida Department of Financial Services adopted a rule requiring settlement agents to provide disclosures in connection with real estate transactions for which title insurance policies are issued. The rule was effective October 28, 2015. The rule applies to settlement agents and title companies.
Georgia DBF Regulations
The Georgia Department of Banking and Finance adopted a Final Rulemaking relating to the disclosure requirements that apply to licensed mortgage lenders and mortgage brokers. The revised rules were effective January 26, 2016.
Massachusetts Division of Banks Issues Guidance on Mortgage Review Board Notice
The Massachusetts Office of Consumer Affairs and Business Regulation, Division of Banks issued an industry letter relating to the requirement that mortgagees provide, with each residential mortgage loan denial, a notice informing the applicant of his or her right to appeal the denial to the appropriate “Mortgage Review Board” in Massachusetts. The letter provides a model form that must be used when providing this notice.
Massachusetts Division of Banks Issues Industry Letter Setting Forth Expectations for Cybersecurity Assessments
The Massachusetts Office of Consumer Affairs and Business Regulation, Division of Banks issued an industry letter relating to cybersecurity assessments and the Federal Financial Institutions Examination Council’s Cybersecurity Assessment Tool.
Massachusetts Issues Guidance On Sunset of 150 Day Cure Period
As of January 1, 2016, the period during which a borrower has the right to cure a residential mortgage loan default is reduced from one hundred and fifty (150) days to ninety (90) days. This is due to the sunset of the 2010 legislation that extended the period to one hundred and fifty (150) days. The Massachusetts Division of Banks issued a FAQ regarding this change.
Montana Updates Rules Governing Mortgage Lenders and Servicers
The Montana Department of Administration updated its rules governing mortgage lenders and servicers including requiring borrower signatures on the loan estimate and closing disclosure. The amended rules were effective December 25, 2015.
Montana Updates Rules Governing Mortgage Brokers
The Montana Department of Administration updated its rules governing mortgage brokers including requiring borrower signatures on the loan estimate and closing disclosure. The amended rules were effective December 25, 2015.
Nevada Commissioner of Mortgage Lending Adopts Mortgage Servicer Rules
The Nevada Commissioner of Mortgage Lending adopted rules governing the licensing and regulation of mortgage servicers. The rules were adopted pursuant to Nevada Assembly Bill 480, which was passed by the Nevada legislature and signed by the governor in June 2015. Effective January 1, 2016, Assembly Bill 480 required mortgage servicers to be licensed. The Commissioner’s rules, which were also effective as of January 1, implement the mortgage servicer licensing requirement.
New Jersey SB 1346
The Governor of New Jersey signed into law Senate Bill 1346, requiring mortgage servicers to provide certain information to mortgagors. The bill is effective February 18, 2016.
New York Department of Financial Services Issues Guidance On Calculating Subprime Threshold
The New York Department of Financial Services issued a letter regarding how to calculate the threshold for determining whether a loan is a “subprime home loan” under New York’s Banking Law. Subprime home loans are subject to certain restrictions under New York law.
Ohio Revises Mortgage Broker Rules
The Ohio Department of Commerce, Division of Financial Institutions amended the rules implementing Ohio’s Mortgage Broker Act. The amended rules were effective January 4, 2016.
Oklahoma Updates High Cost Points and Fees Threshold
The Oklahoma Department of Consumer Credit issued an official declaratory ruling adjusting the statutory points and fees amount that triggers additional disclosure requirements for higher cost mortgage loans.
Under Oklahoma law, the “points and fees” threshold for determining whether certain loans are considered “high cost” is eight percent of the total loan amount or $400, whichever is greater. The $400 figure is subject to adjustment annually. Effective January 1st, 2016, the threshold is $1,017.00, which is the same threshold that the Consumer Financial Protection Bureau (“CFPB”) has set for 2016 for federal Section 32 mortgages. The Ruling clarifies that after 2016, the CFPB’s annual adjustments to the federal Section 32 “points and fees” threshold will also apply to Oklahoma’s threshold.
Oregon Updates Recordkeeping Requirements For TRID Disclosures
The Oregon Department of Consumer and Business Services updated its recordkeeping requirements to require licensed mortgage bankers and mortgage brokers to maintain copies of the Loan Estimate and Closing Disclosure required by the TILA-RESPA Integrated Disclosure Rule, if those documents were required to be prepared in the transaction.
Pennsylvania Base Figure Adjustment
The Pennsylvania Department of Banking announced the adjusted “base figure” for calendar year 2016. Under the Loan Interest and Protection Law, certain disclosure requirements, fee restrictions, and other limitations are applicable to loans with a loan amount equal to or less than the base figure. The adjusted base figure for 2016 is $241,324. This new base figure was effective January 1, 2016.
Rhode Island Supreme Court Rule
The Rhode Island Supreme Court, in Twenty Eleven, LLC v. Botelho, et al., ruled on December 4th, 2015, that the foreclosure of a condominium association’s lien for assessment fees extinguishes a first-priority mortgage on the property.
Texas Amends Regulations Governing Residential Mortgage Loan Companies
The Finance Commission of Texas revised its regulations governing mortgage loan companies. Texas regulations require mortgage loan companies to use a conditional qualification form with specific information whenever they provide mortgage applicants with written confirmation of conditional qualification. The revised regulation clarifies that this form must also be used with “prospective mortgage applicant[s].” The Commission also made changes to the regulations governing advertising and recordkeeping. The revisions were effective November 5, 2015.
Texas House Bill 1683
The Governor of Texas signed into law House Bill 1683, which requires the Secretary of State to assign an identifying number to each notary public and requires each notary public to include the identifying number in its notary seal. The bill was effective January 1, 2016.
Vermont Updates Declared Rate
The Vermont Commissioner of Taxes released the “declared rate” for 2016. 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.” The declared rate for 2016 is 3.6%.
Vermont Banking Division Revises Privacy Regulation
The Vermont Department of Financial Regulation, Banking Division revised its regulation governing privacy of consumer financial and health information. The regulation was effective December 28, 2015.