Mortgage Daily Logo

4 States Pass License Laws, 1 Closes 87 Companies

Mortgage News

Four states have passed legislation in conjunction with federal mortgage licensing laws signed last year by President Bush, while another state awaits its governor’s signature. Nearly 90 Massachusetts mortgage companies faced cease-and-desist orders because they didn’t comply with stiffer approval requirements in the state.

In Oklahoma, Senate Bill No. 1062 required the Department of Consumer Credit to join the Nationwide Mortgage Licensing System. The state said Friday that it will begin using the system, which requires national registration by each individual originator as well as each company, on Aug. 3.

The state said it will be sending out letters to current and exempt licensees.

New Jersey’s Department of Banking and Insurance distributed Bulletin No. 09-16 last month that The New Jersey Residential Mortgage Lending Act, P.L. 2009, c. 53, was established as required by the Secure and Fair Enforcement for Mortgage Licensing Act of 2008.

Beginning around Jan. 1, 2010, New Jersey will begin processing license applications under the new state act. Existing licenses under the old procedures will expire by July 31, 2010.

Idaho’s Department of Finance issued a June interpretation of the Idaho Residential Mortgage Practices Act, Idaho Code § 26-31-101 et seq., which goes into effect on July 1 and replaced the old act. In addition to incorporating the required provisions of the S.A.F.E. act, the state act clarifies that originators are individuals who get paid to take a residential loan application.

Under Idaho’s revised act, many who were exempt from licensing under old regulations are now required to register under the nationwide system by July 31, 2010. Originators who were exempt because they were employed by affiliates of financial institutions only have until July 1, 2009, to meet state licensing requirements — though they have until July 31, 2010, to comply with federal S.A.F.E act requirements.

But individuals who hold an Idaho mortgage loan originator license as of June 30 and successfully renew by Dec. 31 will have until Jan. 1, 2011, to satisfy all of the new requirements for licensing under the Idaho S.A.F.E. Act. Originators at federally insured depository institutions will need to register with the national registry but do not need to get a state license.

Kentucky Gov. Steven Beshear signed House Bill 106 in March, an announcement from the state said. The bill, which becomes law this month, puts the state in compliance with the S.A.F.E. act. Kentucky said it has already joined the Nationwide Mortgage Licensing System.

“Additionally, HB 106 complies with S.A.F.E. by setting forth stringent licensing requirements for those who originate mortgage loans,” Kentucky said. “This includes increasing the required pre-licensing education, adding a competency test and requiring originators to be covered by or post a surety bond.”

Over in Missouri, the state’s House of Representatives sent HB 382 to the governor for signing. The bill replaces the Residential Mortgage Brokers License Act with the Missouri Secure and Fair Enforcement for Mortgage Licensing and Residential Mortgage Brokers Licensing Act. The measure increases mortgage regulation and requires originators to register with the national licensing system. Mortgage brokers would be required to demonstrate financial responsibility and pass a written test.

An emergency clause in the Missouri bill will make it effective as soon as it is signed by the governor.

The Division of Banks for the Commonwealth of Massachusetts announced this month that it issued 87 cease-and-desist orders against licensed mortgage lenders and mortgage brokers who failed to provide required financial information and failed to post a bond. Five immediately responded and provided satisfactory evidence that they have a bond.

The mass closings were prompted by stiffer state regulations enacted in September 2007 requiring a $75,000 bond for mortgage brokers as well as formal financial statements. Lenders were required to obtain audited financials and bonds ranging from $100,000 to $500,000. A transition period ended on Dec. 31, 2008.

Even after the deadline, the division gave the state’s 824 licensees another 90 days.

“The companies closed today have had ample opportunity to secure and submit the required bond,” Division of Banks Commissioner Steven L. Antonakes said in the announcement. “Failure to submit a bond could be an indication of the underlying weakness of the company.

“However, given the current state of the mortgage industry, I expect that the unresponsiveness of these companies is a result of their winding down their operations or having already closed. In any event, the division will not tolerate any licensee that has willfully failed to comply with these requirements.”

AllRegs — an advertiser with MortgageDaily.com — announced in April that its coursework meets loan originator continuing education requirements in 11 states. Five instructor-led online courses approved by various states include FHA training, fair lending and reverse mortgages.

Accenture recently announced that it helped Florida’s Office of Financial Regulation implement a significant operational and technology upgrade on-budget and ahead of schedule.

Net branch lender Centurymark Home Loans has formed an alliance with The School of Mortgage Lending to improve education at the branch level, a May 20 announcement said. Two courses were designed for Centurymark employees with the goal of gaining activity participation by loan originators.

Related Posts

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

There is No Such Thing as a Free House …

Over the past several years, those who service loans in the State of Washington(1) have seen a dramatic rise in the number of lawsuits in which delinquent borrowers seek to quiet title to their homes on the grounds that lenders are barred from foreclosing based on...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

Mortgage Servicer Portfolios

servicing news | mortgages outstanding statistics | foreclosure news   Servicing Portfolios as of 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 Residential Servicing Portfolios by Servicer Last Updated December 14, 2018...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

Fannie Mae Profile

Last Updated December 27, 2018 7:38 PM Central   full list | other directories | bank search | SEC filings | execs | m&a | production   Government Takes Over Fannie, Freddie Sept. 8, 2008 The government has seized control of Fannie Mae and Freddie Mac. The move --...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

Freddie Mac Profile

Government Takes Over Fannie, Freddie Sept. 8, 2008 The government has seized control of Fannie Mae and Freddie Mac. The move -- which is likely to push mortgage rates lower and provide a sense of stability for the more than 10,000 employees at both companies -- is a...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...

Newsletter

Don’t worry, we don’t spam