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House Bill 1646


House Bill 1646

ARCHIVE (2009)

Latest Information

 

DIGEST OF HB1646 (Updated April 27, 2009 11:57 am - DI 84)


Business and other associations. Amends the statute concerning the regulation of loan brokers to specify that the law applies to residential mortgage loans. Amends the statute to bring it into compliance with the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (S.A.F.E. Act). Provides that mortgage loan originators and principal managers must be licensed, rather than registered, by the securities commissioner (commissioner). Reduces the application fees for licensure as a loan broker, mortgage loan originator, or principal manager. Specifies that a unique identifier obtained by an individual from the Nationwide Mortgage Licensing System and Registry (NMLSR) may not be used for purposes other than those set forth in the S.A.F.E. Act. Changes the amount of the bond that a loan broker licensee must maintain. Requires: (1) licensed mortgage loan originators; (2) licensed principal managers; and (3) certain individuals associated with licensed loan brokers; to submit fingerprints to the commissioner every three years for use in criminal history background checks. Requires an applicant for licensure as a mortgage loan originator or as a principal manager to authorize the commissioner to obtain a consumer report concerning the applicant. Sets forth requirements for the written examination that each applicant for licensure as a mortgage loan originator or as a principal manager is required to take. Requires a licensee to renew the licensee's license annually, instead of biennially. Requires, rather than allows, the commissioner to deny, suspend, or revoke a license under certain circumstances. Increases the criminal penalty for violation of the loan broker statute from a Class D to a Class C felony. Provides that a violation is a Class B felony if the person damaged by the violation is at least 60 years of age. Requires a loan broker licensee to maintain a report of all residential mortgage loans originated by the licensee, including pending loans and loans that were not closed. Prohibits a person, in connection with a contract for loan brokerage services, from violating certain federal laws and regulations concerning residential mortgage lending. Provides that an individual who acts solely as a loan processor or underwriter shall not represent to the public that the individual may or will perform mortgage loan origination activities. Provides that the academic instruction that a person must complete to obtain or maintain a license must include specified hours of instruction in certain courses. Specifies that the written examination and academic instruction required for licensure as a mortgage loan originator or a principal manager must be approved by the NMLSR. Requires each loan broker licensee to submit periodic reports of condition to: (1) the commissioner; and (2) the NMLSR. Amends the uniform securities act to provide that: (1) a registered broker-dealer office that is selected to complete a compliance report shall file its report not later than 45 days (instead of 90 days under current law) after being notified of its selection; (2) a person who knowingly violates the act while using or taking advantage of a relationship based on religious affiliation or worship commits a Class B felony; and (3) a person who commits a fraud in connection with the offer, sale, or purchase of a security commits a Class B felony if the person damaged by the fraud is at least 60 years of age. Repeals a provision exempting certain persons from the loan broker statute.
Current Status:
 Law Enacted
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