NO  STATE  LATEST NEWS
   CO BROKER ALERT! I have just been informed today [9/18/2007] by CO Department of Real Estate [both Mr. Whitaker and Mr. High] that Loan Officers of Retail Lenders MUST be REGISTERED as MORTGAGE BROKERS in CO under the CO Mortgage Broker License Act. Account Executives of Wholesale Lenders are EXEMPT but Loan Officers of Retail Lenders are NOT EXEMPT and MUST REGISTER AS MORTGAGE BROKERS. This interpretation coupled with the Elimination of the FHA/HUD exemption means that Loan Officers of Retail Lenders are NOT and MUST REGISTER AS MORTGAGE BROKERS. Even those that qualified for the Good Faith Temporary Registration due to loss of the FHA/HUD Exemption are in violation of the law since it ended September 1st. Therefore, all Loan Officers of Retail Lenders are NOT REGISTERED AS A COLORADO MORTGAGE BROKERS are engaging in "unlicensed activities" and subject to fines and sanctions. Call Herb Thomas at 214-692-7611 and he can get your loan officers compliant.
   MT

New Law Requires Licensing of Mortgage Lenders - Residential mortgage lenders doing business in Montana are required to be licensed by the Division of Banking and Financial Institutions (Division) as of October 1, 2008. This new licensing requirement was created by the Montana Residential Mortgage Lender Licensing Act (Act) that was signed into law by Governor Brian Schweitzer on May 3, 2007 as part of House Bill 69 (HB 69). The Act requires the licensing of business entities as well as any branch offices that will be engaged in making Montana residential mortgage loans. Licensing fees for the business entity will be $750.00 and each subsequent branch location will be $250.00. Licenses will be renewed annually and will expire on September 30.

The State of Montana does not require licensure of first lien mortgage lenders at this time (licensing required under HB 69 as of October 1, 2008). This applies to both wholesale and retail lending in Montana. Second lien mortgage lenders that exceed the usury as outlined in Section 31-1-107, MCA are required to obtain consumer loan licenses. The current usury is 15% interest. Therefore, any lender making second lien mortgage loan at an interest rate, which exceeds 15% is required to be licensed in accordance with the Montana Consumer Loan Act. The State of Montana does not require a license for second lien mortgage lenders that make loans under this usury at this time (licensing required under HB 69 as of October 1, 2008).

   AK  HB 162 : Mortgage Lending
Passed Legislature! Awaiting Signature of Governor Expected to Occur 7/13/07
Relating to mortgage lenders, mortgage brokers, mortgage originators, state agents who collect program administration fees, and other persons who engage in activities relating to mortgage lending; relating to mortgage loan activities; relating to an originator fund; relating to fees for mortgage loan transactions; making certain violations unfair trade practices; relating to persons who are licensed under the Alaska Small Loans Act; and providing for an effective date of 5-13-07.
Version: SCS CSHB 162(FIN)Status: Await Transmit To Governor : 2007-05-14
Contact: Nancy Manly, 465-4931
Alaska is the last state not to license and regulate residential mortgage lending. As a result, the Alaska Division of Banking and Securities has no authority to investigate the more than 20 complaints and over 50 phone calls it receives weekly about questionable lending practices. ... Sponsor Statement "2007-05-13 : Mortgage Lenders Licensure Bill Heads to Governor
Lynn's HB 162 Provides Consumer Protection for Homebuyers 2007-05-04 : House Passes Bill to License Mortgage Lenders HB 162 Provides Consumer Protection for Homebuyers
 

CO Broker

FHA Exemption

Repealed -- --

Emergency Rule

CO DIVISION OF REAL ESTATE - Emergency Rule
MORTGAGE BROKER REGISTRATION
The Colorado Division of Real Estate adopts the following emergency rule according to its authority as found in §§ 12-61-901, et seq., and 24-4-104(6), C.R.S.
Section 2 Scope and Purpose
The Colorado Division of Real Estate finds that immediate adoption of this rule is imperatively necessary for the preservation of public health, safety or welfare and that compliance with the rulemaking requirements of § 24-4-103, C.R.S., would be contrary to public interest.
Section 12-61-904(1)(e), C.R.S. (2006), provides an exemption for Federal Housing Administration approved mortgagees or an appointed Federal Housing Administration correspondents, acting through officers, partners, members, exclusive agents, contractors, or employees of such entities when making or brokering any mortgage loan. HB07-1322, § 12-61-901, et seq., repeals this exemption effective June 1, 2007. The repeal of the exemption creates an unrealistic timeline to register those affected mortgage brokers. Additionally, the repeal of this provision instantly prevents anyone previously exempted by the above-referenced section in the 2006 statute from brokering a mortgage. There are approximately 12,000 brokers who were previously exempted by this provision and who will be affected by the change. To prevent them from brokering a mortgage until fully compliant with the provisions of the revised statute would cause severe and grave economic harm to them and, potentially, to the entire real estate industry in the State of Colorado. Accordingly, the Division must promulgate a rule that allows both for immediate temporary registration of any mortgage broker who had previously been exempted and adequate time for these affected persons to become compliant with mortgage broker registration.
Without the immediate adoption of this emergency rule, the public’s interest is not served. Wherefore, the Colorado Division of Real Estate, pursuant to § 24-4-103(6), C.R.S. has an obvious and stated need to adopt this rule.
Section 3 Applicability
This emergency rule governs individuals who broker a mortgage or act as a mortgage broker and is not intended for individuals who remain exempt from registration pursuant to § 12-61-904, C.R.S. (2007).
Section 4 Definitions
A. “Good-Faith Effort” is defined as complying with the provisions as set forth below in this rule.
Section 5. Rules Regarding Registration
Mortgage Broker – Temporary Registration
Temporary Registration
1. Each and every mortgage broker including those who made a good-faith effort to comply with or who were exempt from the previous registration law, HB 06-1161, §§ 12-61-901 to 911, C.R.S. is hereby granted immediate, temporary registration through and including September 1, 2007, or until such date as the broker demonstrates a good-faith effort to comply with the requirements of HB07-1322, § 12-61-901, et seq., C.R.S., or whichever date is earlier, with the following exceptions:
a. Mortgage brokers denied registration shall not receive temporary registration under this rule.
b. Mortgage brokers who have not demonstrated a good-faith effort to become registered under the previous registration law, HB 06-1161, §§ 12-61-901 to 911, C.R.S. shall not receive temporary registration under this rule.
2. Mortgage brokers demonstrating to the Director a good-faith effort to comply with newly enacted HB07-1322, § 12-61- 901, et seq., C.R.S. shall be issued a Good-Faith Temporary Registration upon compliance with the requirements set forth below.
A. Prior to submitting an application, a set of fingerprints for a criminal history
record check must be submitted to the Colorado Bureau of Investigation (CBI);
B. Acquisition of a $25,000.00 surety bond as required by § 12-61-907, C.R.S;
C. Completion of the mortgage broker application; and
D. Payment of the $200.00 application fee.
3. Good-Faith Temporary Registrations will expire upon determination by the Director that the requirements of the law have not been met. Applicants shall be notified via e-mail, fax or US mail to the contact information provided to the Division of Real Estate in the applicant’s application.
4. Good-Faith Temporary Registrations issued by the Director will remain in effect until December 31, 2007, unless the Director issues the applicant a full registration upon the applicant’s compliance with all terms of the applicable registration law, or unless the Director determines the registration to be expired for failure to comply with the requirements to obtain a Good Faith Temporary Registration, as set forth in this regulation.
5. Any temporary registration issued by the Director shall have the same force and effect of the registration required by § 12-61-901, et seq., for the period of time it is in effect.
6. Once the applicant fully complies with the terms of the new law as determined by the Director, the Director shall register the applicant in accordance with § 12-61-903, C.R.S. The date this occurs will be the applicant’s anniversary date for purposes of compliance with the licensing and education requirements of § 12-61-903, C.R.S.
Section 6. Effective Date
This emergency rule is effective upon signature, by the Governor of the State of Colorado, of HB07-1322. The Governor signed the Act on 6-1-2007.
   CO Broker

Colorado Mortgage Broker Legislative Update House Bill 07-1322 – Effective upon signature by Governor Bill Ritter on 6-1-2007 - Repeals the FHA exemption - Requires mortgage brokers to act for the benefit of the borrower by taking actions that include a reasonable inquiry concerning the borrower’s current and prospective financial status. - Defines prohibited conduct regarding fraud, misrepresentation, and conflict of interest. - Defines disclosures specific to fees, costs, and lock-in agreement terms.

Senate Bill 07-085 – Effective July 1, 2007 - Prohibits a mortgage broker from improperly influencing a real estate appraisal and makes such improper influencing a deceptive trade practice. - Specifies criminal penalties for improperly influencing a real estate appraisal. Authorizes the Director, of the Division of Real Estate, to revoke a mortgage broker’s registration when the broker has improperly influenced a real estate appraisal.

Senate Bill 07-216 – Effective July 1, 2007 Creates a duty of good faith and fair dealing for mortgage brokers in their communications and transactions with borrowers. - Requires refinancing transactions to have a reasonable, tangible net benefit to borrowers. Requires the Director to promulgate rules governing the marketing of nontraditional mortgages by mortgage brokers.

Senate Bill 07-203 – Effective January 1, 2008 - Changes the regulatory framework for mortgage brokers from registration to licensing. - E&O insurance becomes a requirement for licensing. - Establishes pre-licensing education requirements, testing, and continuing education for mortgage brokers. Education component becomes effective January 1, 2009. - Defines grounds for disciplinary action.

   LA LA Bill Requiring a Physical Office in LA has passed the House 102-0 and been assigned to the Senate Commerce Committee for a hearing on June 13, 2007. If passed by the Senate and approved by the Governor, the physical office requirement would become effective 8/15/2007.
   MD MARYLAND: As of 1/1/07, MD now licenses Loan Originators - On Friday, May 04, 2007, the Inman News reported that Maryland can't keep up with loan officer licensing. Maryland's new licensing requirements for mortgage loan originators have created a backlog of applications awaiting approval by regulators. The Gazette of Gaithersburg reported the state, which had an estimated 12,000 mortgage loan officers in 2005 when the law requiring licensing was passed, started taking applications from mortgage officers in July. By the time the law took effect in January, 5,500 loan officers had been licensed, and as of April 24 regulators had approved 8,700 of 11,400 applications received. Applications continue to pour in at the rate of 20 to 30 a day, state officials said. A state official told The Gazette that the lending industry supported licensing requirements because they would weed out unethical loan officers. So far, fewer than 40 applications have been denied. The law requires that loan officers pass an exam, and have three years of experience or have completed 40 hours of continuing education.
   MN MN Mortgage Originators & Servicers Licensing: New requirements for MO and MS licensing On May 8, 2007, the omnibus bill Senate File No. 2096 was signed into law by Governor Pawlenty. The bill contains a variety of legislative changes, including significant changes to Chapter 58, the Minnesota Mortgage Originator and Servicer Licensing Act. The bill's effective date is August 1, 2007, but several of the provisions have a later effective date. Beginning August 1, 2007, an applicant for a residential mortgage originator license must be a corporation or other business entity and must have one of the following: (1) approval as a mortgagee by either HUD or FNMA; (2) tangible net worth of $250,000; or (3) a $50,000 surety bond or letter of credit, and meet other requirements in order to obtain a license. After July 31, 2007, the Department will no longer license natural persons as residential mortgage originators. Likewise, exemption from licensure for certain real estate agents and insurance agents will not be available after July 31, 2007. The Department will be consulting with surety bond providers concerning a bond form that will meet the requirements. The fee for an initial mortgage originator license has been increased from $850 to $2,125 and the renewal fee has been increased from $450 to $1,125, effective August 1, 2007. The July 31, 2007 renewal date for mortgage originators who are already licensed has been pushed back to October 30 to enable licensees to meet the new licensing requirements. There is no grandfathering of existing licensees. The bill also provides for 15 hours of educational training covering state and federal laws for all individuals engaged in residential mortgage origination which must be completed by March 1, 2008. Provided that the training meets the statutory requirements, the Department will give credit for training completed within 24 months prior to the August 1, 2007 effective date of the statute. Likewise, courses approved by other states may qualify for satisfying at least part of the educational requirement. Natural persons, including independent contractors, who are employed as mortgage originators by licensees and exempt entities, are not required to be licensed; however, the entity employing them must maintain a perpetual list of these individuals, perform background checks on these individuals, assure compliance with the prohibition contained in Section 58.125 and assure that the individuals have completed the education requirement. Additional more specific information will be mailed to licensees in the coming weeks. To see the bill, follow this link ... The portions pertaining to Chapter 58 are lines 184.4 to 188.10, 222.12 to 222.14 and 222.20 to 222.21
   MS MS Mortgage Licensing Law changes effective July 1, 2007. The Correspondent Lender License is eliminated and licensee must choose to either get a Mortgage Broker License [bond of $25000] or a Mortgage Lender License [Bond of $150,000]. Principal Officer must have 2 years mortgage experience in the last 4 years and if experience is outside of MS then a 4 hr course on MS law is required. Loan originators must have 1 year of mtg experience in last 2 years or must take 24 hour course with at least 4 hours on MS law. Renewals require 12 hours of continuing education with at least 2 hours on MS law. Background checks extended to from 10 years to lifetime and a felony or certain midemeanors will result in denial of licenses. Licenses will expire on December 31 each year and Annual Reports are due March 31st.
   WA The New WA Loan Originator and Designated Broker Licensing Test: The new WA mortgage licensing test will become available in June 2007. Candidates can begin to register to take the tests any time after May 1, 2007. Test will be administered by Promissor, a national testing service. To register and find the testing center nearest you, go to the Promissor web site at http://www.promissor.com Click for Registration details.
   MI MICHIGAN: MI Introduces Mortgage Loan Officer License Bill. MI 2007 House Bill 4596 (Expand mortgage loan officer licensure ) Introduced by Rep. Shanelle Jackson on April 12, 2007, to expand to mortgage loan officers the state licensure that is imposed on mortgage brokers, mortgage lenders, and mortgage servicers. Referred to the House Banking and Financial Services Committee on April 12, 2007. "Sec. 2. (1) A person shall not act as a mortgage broker, mortgage lender, mortgage loan officer, or mortgage servicer without first obtaining a license or registering under this act …"
   MA MASSACHUSSETTS: MA Introduces Mortgage Loan Originator License Bill. MA Legislation seeks to require licensure of mortgage loan originators. Several bills which aim to protect consumers through increased regulation of the mortgage industry have been filed with the Massachusetts Legislature. Specifically, at least three measures have been proposed to license the estimated 30,000 mortgage loan originators who operate in MA. At present, only mortgage companies must be licensed to do business in MA.
   RI RHODE ISLAND: RI Introduces Mortgage Loan Originator License Bill. Feb. 9, 2007 According to the Legislative Press Bureau, Sen. William A. Walaska (D-Dist. 30, Warwick) has introduced legislation (2007-S 0104) to require training and state licensing for all mortgage loan originators in the state, many of whom are now unregulated. The R.I. Department of Business Regulation would handle licensing and establish education requirements.
   
   GA GEORGIA: GA Introduces Mortgage Loan Officer License Bill. HB 718 introduced by Rep. Holmes amends the Georgia Residential Mortgage Act to extend the licensing of mortgage lenders and mortgage brokers to include mortgage loan officers, a new term being defined in the Act. Loan officer' means a person who acts as an employee and not as an independent contractor to assist a licensee in performing one or more of the following activities to or for a consumer: accepting or offering to accept a mortgage loan application, soliciting a mortgage loan, negotiating the terms or conditions of a mortgage loan, issuing mortgage loan commitments or interest rate guarantee agreements, or advising on any aspect of a mortgage loan transaction, whether such acts are done through contact by telephone, by electronic means, by mail, or in person with consumers. Such term shall not include or apply to a lender or broker who is an approved FHA Title II supervised, nonsupervised, government, or loan correspondent mortgagee with an audited net worth of at least $150,000.00. On or after July 1, 2007, it is unlawful for any natural person to act as a loan officer without first obtaining authorization from the department.
   PA PENNSYLVANIA: PA Introduces Mortgage Loan Originator License Bill. The PA Banking Department has also been working with the state legislature to adopt a package of six bills to address abusive mortgage lending practices. Senate Bills 1260 and 1261: Senate Bill 1260 (which would amend the MBBCEPA) and Senate Bill 1261 (which would amend the SMLA) would, among other things: require licensing of mortgage originators (employees of licensees who solicit or accept loan applications); require all applicants for a license to complete at least 12 hours' prequalification education and an examination regarding such laws; increase the licensing and renewal fees for all licensees; and expand the Department's examination and enforcement powers.
   AZ ARIZONA: AZ Loan Officer License Legislation Dies. During the last week of March, 2007, the AZ loan officer license bill which had previously passed overwhelmingly in the House, died in the Senate. A bill to license as many as 18,000 loan officers and mortgage originators never got a chance to be heard in the Senate after passing the House, 47-10. Under the bill (HB2320), beginning on January 1, 2009, Arizona's loan officers and originators working for Arizona mortgage brokers would require licenses. If the legislation becomes law, loan officers and originators will have to complete a course of study for loan originators, pass a test and pay a fee. They also cannot have any felony convictions.
   SD SD Now Requires Loan Officer Licenses-Effective July 1, 2007 SD Sen Bill 165 repealed and reestablished provisions to regulate mortgage lenders and brokers. Under the new law, mortgage loan originators are required to be registered as of December 31, 2007. Additionally, mortgage lenders and brokers must maintain a surety bond in the amount of $25,000, submit to a criminal background check, and have at least two years of experience prior to initial licensing.
   WV WV Requires Loan Originators of Licensees Holding Both Mortgage Lender and Broker Licenses WV passed a bill [HB 2776] requiring an entity holding both a mortgage lender and broker license to license its individual loan originators when the majority of the entity's residential mortgage loan transactions are brokered transactions. The bill becomes effective June 6, 2007.
   NY  NEW YORK – Loan Officer Licensing Requirements Effective January 1, 2008 , New York law will require that loan officers of Mortgage Banker Licensees and Mortgage Broker Registrants obtain registrations from the New York State Banking Department prior to conducting loan origination activities.
   CO

 COLORADO passed a Mortgage Broker License Act that will require mortgage brokers to be licensed as of 1/1/07 - H.B. 1161

Frequently Asked Questions to CO Assoc of Mortgage Brokers

Frequestly Asked Questions by the CO Mortgage Lenders Association

   NM  NEW MEXICO: NM Considers Introduction of Loan Originator License Legislation. On January 25, 2006, New Mexico Senator Mark Boitano (District 18) introduced Senate Memorial #1 titled "Individual Loan Originator Licensing Study". The intent is for various state legislative committees to study the feasibility of creating such legislation and the impact that it will have on the public, the mortgage industry and the state's budget. NM Association of Mortgage Brokers supports such legislation.
  OH OHIO: OH changes Mortgage broker and loan officer education requirements. Any person who applies for a mortgage broker certificate or loan officer license on or after January 1, 2007 must complete 24 hours of classroom instruction within the preceding ten years (broken down: 8-real estate finance/lending; 8-Ohio real estate, federal civil rights law; 4 real estate appraisal; and 4 ethics).
  OR OREGON: Oregon Regulation Requires Diligent Supervision of Loan Officers. On January 17, 2007 the Oregon Division of Finance and Corporate Securities amended regulations now requiring mortgage lenders and brokers to diligently supervise and control the loan originators they employ. The regulations also require loan originators to complete coursework and pass an examination prior to accepting loan applications from consumers. The regulations became effective upon passage.
   ME MAINE: Loan Officer Education Rule is Issued. Loan Officer Education requirements subsequent to January 31, 2008, 16 credit-hours of approved courses or tests/examinations. Those individuals must thereafter complete an additional 12 credit-hours of approved continuing education during each subsequent 12-month period.
   TX TEXAS: MORTGAGE BROKER/LOAN OFFICER LEGISLATION INTRODUCED. HB 692 gives the mortgage broker and loan officer the right to originate a second lien along with their first lien. All licensing, examination and enforcement of the laws will rest with the authority of the Savings and Mortgage Lending Department.
   NC NORTH CAROLINA: NC Proposed Legislation to Help Regulate Loan Originators. N.C. House Bill 313, making public the name of the loan originator. Requires deeds of trust, which are public records that set out loan terms for home sales, to carry the name of the mortgage broker or loan originator. N.C. Commissioner of Banks Joseph Smith is promoting the bill to help his office regulate the state's mortgage loan originators.
   IN Broker  IN now requires loan officers to be registered
  ME Registration is required of loan officers employed by Loan Brokers, as well as employed by non-bank mortgage lenders. Those loan officers who will have direct contact [by phone or in person] with Maine consumers must be registered. The registration fee is $20 per loan officer per year, up to a maximum of $200 per sompnay per year. Also, branch licenses are required for each location at which loan officers operate.
   MD Broker

 NEW LICENSING REQUIREMENTS FOR MD MORTGAGE ORIGINATORS
Chapter 590 Laws of Md. (2005) - House Bill 1040

Effective October 1, 2005, Chapter 590 will establish new licensing requirements for mortgage originators. The law requires mortgage broker loan officers and under certain circumstances, mortgage lender loan officers to become licensed with the Maryland Commissioner of Financial Regulation not later than January 1, 2007.

In the new law, "mortgage originator" is an individual who: (1) either is employed by a mortgage lender that is a mortgage broker under FI 11-501(i) or has a net branch office out of which the individual works; (2) directly contacts prospective borrowers for the purpose of negotiating with or advising the prospective borrowers regarding mortgage loan terms and availability; (3) receives compensation on a percentage basis; and (4) is authorized to accept a loan application on behalf of the mortgage lender.

If you are an employee of a mortgage lender (that makes mortgage loans), no license is required unless you work out of a net branch and meet the other criteria of a "mortgage originator".

If you are an employee of a mortgage broker and meet the other criteria of a "mortgage originator", you will need a license.
As general awareness of the new law has grown, the Office of the Commissioner has begun to receive a number of questions from the industry. Some of these frequently asked questions and their answers are provided as general information. You may access the Q & A fact sheet at the Office of the Commissioner website http://dllr.state.md.us/finance. A copy of House Bill 1040 (available in Adobe Acrobat format) can also be found at the above website.

Maryland is becoming a physical presence state for mortgage brokers. The physical presence requirement will be based on reciprocity. If a state requires a Maryland broker to have a location in that state in order to broker loans, then Maryland will do likewise requiring companies brokering Maryland loans from those states to obtain a licensed location in Maryland.

   MT

 Montana Law Requires Licensing of Mortgage Bankers
HELENA, MONTANA – Annie Goodwin, Commissioner of the Montana Division of Banking and Financial Institutions, announced that the Montana Legislature passed a law, which requires the licensing of mortgage bankers. The law amends the Montana Mortgage Broker and Loan Originator Licensing Act. On April 20, 2005, Governor Brian Schweitzer signed Senate Bill 274 into law requiring mortgage bankers providing mortgage broker services to obtain licensure with the Montana Division of Banking and Financial Institutions of the Department of Administration.

For more information, please see the Press Release.

   NC

 Latest News

**Online Loan Officer Application** Loan officer applications may be submitted online starting September 2, 2005

Expired license renewal information (Expired licenses may by renewed until September 30, 2005)

   LA

 

ATTENTION MORTGAGE BROKERS/LENDERS
Effective August 15, 2005, obtaining a passing grade on a pre-licensing test is
required prior to becoming a licensed originator.
Click here for a copy of Act 235 which provides certain exemptions
for education and experience

Exemptions: (4) The provisions of Paragraph (1) of this Subsection shall not apply to an
applicant for licensure who:
(a) Has received a bachelor's or master's degree in an area related to finance,
banking, or business administration
from an accredited college or university and has
had within the three years immediately preceding the date of the application twelve
months experience in the mortgage lending field
as evidenced by documentary proof
of full-time employment by a mortgage broker, mortgage lender, originator, or a
person exempt from the provisions of this Part or this Chapter,

(b) Has had within the three years immediately preceding the date of the
application twenty-four months experience in the mortgage lending field as
evidenced by documentary proof of full-time employment by a mortgage broker,
mortgage lender, originator, or by a person exempt from the provisions of this Part
or this Chapter,

   OK

New Exemptions from the OK Mortgage Broker Licensure Act: Mortgage Bankers: HUD/DE, 80% loans closed as a lender, Fannie Mae, Freddie Mac, Ginnie Mae 

Section 2083. The following are exempt from all provisions of the Mortgage Broker Licensure Act:
10. A mortgage banker as defined in paragraph 11 of Section 2082 of this title.
SECTION 1. This act shall become effective July 1, 2005.
11. "Mortgage banker" means any person who accepts an application for a mortgage loan or makes a mortgage loan and:
a. is an approved or authorized mortgagee with direct endorsement underwriting authority granted by the United States Department of Housing and Urban Development, or
b. closes mortgage loans in its corporate name as the originating mortgagee and funds a minimum of eighty percent (80%) of the total annual numeric volume of mortgage loans it originates for sale into the secondary mortgage market with its own corporate funds, or
c. is approved as a seller or servicer by the Federal National Mortgage Association, Federal Home Loan Mortgage Association or the Government National Mortgage Association;

   AK

 Business License Not Required: This is an email recently received from AK:

From: Bryan Kautz [mailto:bryan_kautz@commerce.state.ak.us]
Sent: Wednesday, November 02, 2005 2:53 PM
Subject: Alaska Business License

To whom it may concern,
If you have no offices here and you do not have any employees residing within the state then you do not need an Alaskan Business License. The state of Alaska does not regulate mortgage brokers.
Thank you very much.
Bryan Kautz
Business Licensing Program

   WI

WI LAW CHANGE-

Notice to Loan Originators: New Test Requirment Starts 7/1/05 -

   WY

 ***IMPORTANT****

As of July 26, 2005, the Rules under the Wyoming Residential Mortgage Practices Act have been finalized and applications can now be submitted. Please make sure that the application is complete and includes the surety bond in addition to the Schedule BR for identifying branch locations and the Statement of Financial Condition that was added within the past few weeks.

The application fee that must also be sent along with the application is five hundred dollars ($500.00) for the home office location and fifty dollars ($50.00) for each additional branch location. Please make your checks payable to the Department of Audit.

"The Wyoming State Banking Commissioner now has the responsibility for licensing and regulating mortgage lenders and brokers in the state as authorized by the Wyoming Residential Mortgages Practices Act, which was signed into law by Governor Freudenthal on February 25, 2005." The entire press release is contained in the attached file: Mortgage Lender & Broker Press Release issued by Commissioner Jeffrey C. Vogel March 4, 2005

The following questions have been asked regarding licensing mortgage lenders and brokers:

Question: When will the application forms for a license be available?

Answer: Our office is in the process of promulgating the Rules that are necessary under the Act. That process should be completed and the application forms should be available sometime in June.

Question: When do I have to obtain a license?

Answer: Any person or entity engaged in business in Wyoming as of July 1, 2005 will have until September 30, 2005 to apply for a license. Any person or entity that was not engaged in business in Wyoming as of July 1, 2005 will need to obtain a license prior to engaging in business governed by the Act.

Question: When do I have to start complying with the requirements of the Act?

Answer: Compliance with all of the provisions of the Act is mandatory beginning July 1, 2005 .

Question: Do I need to obtain a new license if I already hold a Supervised Lender license?

Answer: Yes. The Supervised Lender license only authorizes a lender to make loans under the Wyoming Uniform Consumer Credit Code, which governs all consumer loans except first lien mortgage transactions. First lien mortgage lenders and brokers now have to be licensed under the Residential Mortgage Practices Act. Any person or entity engaged in activities under both laws must hold both licenses.

Question: Where can I get information on the progress of the Rules and the application form?

Answer: Information regarding the progress of the Rules and the application forms will be posted on our website at http://audit.state.wy.us/banking/.

Question: Am I required to have a physical location in Wyoming in order to transact business?

Answer. No. Out-of-state lenders can do business with Wyoming consumers but must be properly licensed.

Question: Do I need to obtain a license if I operate via the Internet?

Answer: Yes. Other than the specific exemptions listed under W.S. 40-23-105, the act applies to persons engaged in first lien mortgage lending and brokering activities with Wyoming residents through any medium.

   NJ NJ News: Take Test Before Filing Application
The NJ Department is no longer involved in scheduling or administering the Licensed Lender test for mortgage banker, correspondent mortgage banker, mortgage broker and/or secondary mortgage lender licensing. The testing is now being administered by a vendor, Promissor Inc. You must arrange for testing by contacting Promissor directly. Please visit their Web site (www.promissor.com) for detailed information on testing procedures and test sites. NOTE: You are no longer required to file the completed application PRIOR to testing. As of January 1, 2005, no application will be accepted for processing without the original pass notice afixed to the individual application. Any application filed without the notice will automatically be returned. TESTING The individual upon whom the business entity's license will rely or a replacement or additional individual must take and pass the State Licensure examination administered by Promissor. Individual applicants must contact Promissor directly to arrange for testing. Candidates seeking to be licensed as a mortgage banker, or mortgage broker must take the Mortgage Banker/Broker examination. Candidates seeking to be licensed as secondary lenders must take the secondary lender examination. Candidates seeking to be licensed for both mortgage banker, or correspondent mortgage banker, or mortgage broker and secondary lender will have the option of taking one combined examination. NEW Refer to the Candidate Handbook. Replacement/additional individuals seeking licensure must select the same authority(ies) held by the employing company. THERE IS NO PREREQUISITE COURSE REQUIRED. Test preparation is on an independent basis with the necessary knowledge identified in the Study Outline contained in the Handbook. The original Pass Notice must be signed and attached to the completed individual application.
   IL

NEWS RELEASE from the ILLINOIS OFFICE OF BANKS AND REAL ESTATE-ROD R. BLAGOJEVICH Governor ——D. LORENZO PADRON CommissionerFOR IMMEDIATE RELEASE Clare Thorpe-FRIDAY, JUNE 4, 2004 Phone: (217) 785-2903 Email: cthorpe@bre.state.il.us State Law To Regulate Mortgage Lending to Take Effect on July 1, 2004
SPRINGFIELD, IL – Illinois home buyers will have greater protection in obtaining mortgage loans thanks to legislation signed by Governor Blagojevich which requires loan originators, operating in the State to be registered with the Illinois Office of Banks and Real Estate (OBRE). The High Risk Home Loan Act becomes effective on July 1, 2004. “This Act contains the required components to allow OBRE to accomplish its dual mission of protecting the interest of the citizens of the State and the image of the mortgage industry. The implementation of the Act will bring discipline to the industry through licensing, education, and enforcement and will help OBRE in its efforts to eradicate predatory lending practices in Illinois,” said D. Lorenzo Padrón, Commissioner. Starting July 1, 2004, loan originators must access OBRE’s Web site, www.obre.state.il.us, to obtain a provisional registration, which will last through December 31, 2004. By January 1, 2005, loan originators will be required to pass a written test and will be subjected to a criminal and a credit background check. Applicants currently employed by an Illinois residential mortgage licensee for two of the past three years will be allowed until June 30, 2005 to take the test. In addition, loan originators are required to meet annual continuing education requirements. Loan originators will also be required to carry a pocket card issued by OBRE to provide proper identification to consumers and law enforcement officials; OBRE will create a web site roster of all registered loan originators authorized to do business in Illinois. For additional information, please call the Mortgage Banking Licensing Division at (312)
793-1409.

Provisional Loan Originator Application
Loan Originator Examination Candidate Handbook
Loan Originator Emergency Rules - Provisional Registration
Loan Originator Proposed Rules

   NETBRANCHING

PROHIBITED NETBRANCH ARRANGEMENTS

HUD -- RI -- GA -- WA

   MS

 New Amendments to MS Mortgage Consumer Protection Law:

Some of the Changes: [1] Registered Companies (formerly called "exempt companies") will now have to register all employees who meet the definition of a "Loan Originator": background check and $100 fee and 12 hours of continuing education after license approval [2] Registered Companies will now have to register branch offices [3] Veteran's Administration exemption has been eliminated and is no longer a basis for license exemption

   TX

Compliance Alert to TX Mortgage Brokers: Be Prepared for an In-Office Examination by the Texas Savings and Loan Department

1. Read the Overview of the In-Office Examination Published by the TX Savings and Loan Department

2. Read an Article by BrokerCompliance.com Which Gives Good Advice for Preparation for an In-Office Examination

3. Read the Rating System for the Examination Published by the TX Savings and Loan Department

4. Look at a Sample Letter from the TX Savings and Loan Department notifying You that the Examiner is coming to your office

Other Compliance News:

1. New Regulations covering Recovery Fund Access, Discount Points Prohibition, Advertising Requirements

2. Sample of Correct Advertisement

3. Internet Policies - Mortgage Broker Disclosures - Multiple Role Disclosures

  LOAN OFFICERS NEWS

 27 States with Loan Officer Licenses.pdf

IL: see IL above for new Loan Officer registration requirements began 7/1/04 and test required beginning 7/1/05

TN: Loan Officers must be registered starting 1/1/05

KY: Loan Officer licenses are required although you are HUD exempt

MT: Loan Officer licenses are required as well as an exam

OK Broker: Loan Officer licenses are required as well as an exam

ID Loan Officer Licenses starting 1/1/06

LA Loan Officer Exams start 8/15/05

SC Broker License now has Loan Officer Licenses

ME now has Loan Officer Licenses

   NY

 NY MORTGAGE BANKER BOND AMOUNTS

410.9 Corporate surety bonds for mortgage bankers
a. Every mortgage banker licensed pursuant to Banking Law Section 591 shall file with the [s]Superintendent a corporate surety bond in a principal amount of not less than $50,000 or more than $500,000 based on its volume of business. The amount of the bond required shall be as follows:

 Aggregate $ Amount of NY Loans Closed  Required Amount of Surety Bond
 $300,000,000+  $500,000
 $200,000,000 - $299,999,999  $350,000
 $100,000,000 - $199,999,999  $250,000
 $30,000,000 - $99,999,999  $150,000
 $10,000,000 - $29,999,999  $100,000
 $0 - $9,999,999  $50,000


The amount of the surety bond shall be determined from information submitted in the annual Volume of Operations Report ("VOOR"). The 2004 bond will be based upon the 2002 VOOR figures reported to the Department.

NY MORTGAGE BROKER BOND AMOUNTS

410.15 Corporate surety bonds for mortgage brokers [Imposition of corporate surety bond or deposit of assets on mortgage brokers]
a. Every mortgage broker registered pursuant to Banking Law Section 591-a shall file with the Superintendent a corporate surety bond in a principal amount of not less than $10,000 or more than $100,000 based on its number of applications. The amount of the bond required shall be as follows:
 Number of New York Applications  Required Amount of Surety Bond
 600+  $100,000
 300 - 599  $75,000
 100- 299  $50,000
 25 - 99  $25,000
 0 - 24  $10,000

The amount of the surety bond shall be determined from information submitted in the annual Volume of Operations Report ("VOOR"). The 2004 bond will be based upon the 2002 VOOR figures reported to the Department. SEE OTHER CHANGES TO NY LICENSING REQUIREMENTS

  MT 

 Montana Mortgage Broker and Loan Originator Licensing Act

32-9-102. License requirement. A person or entity may not act as a residential mortgage broker or loan originator after September 1, 2004, unless licensed under the provisions of this part. 32-9-108. Overall licensing requirements. All persons and entities desiring to conduct business as a mortgage broker or to work as a loan originator shall apply to the department for a license and pay a license fee under the provisions of this part on or after July 1, 2004. Definitions: (10) "Mortgage broker" means a person or entity that provides services for a fee as an intermediary between a borrower and a lender in obtaining financing for the borrower that is to be secured by a residential dwelling for between one and four families located on real property purchased by the borrower with the loan provided by the lender. (7) "Loan originator" means a licensed individual employed by a mortgage broker to assist borrowers by originating a residential loan. (11) "Originate" means: (a) to negotiate or arrange or to offer to negotiate or arrange a mortgage loan between a borrower and a person or entity that makes or funds mortgage loans; (b) to issue a commitment for a mortgage loan to a borrower; or (c) to place, assist in placing, or find a mortgage loan for a borrower. .
32-9-104. Exemptions. The provisions of this part do not apply to: (5) a mortgage banker, except that a mortgage banker that also provides services as a mortgage broker for more than four mortgage loans in a calendar year must be licensed as a mortgage broker with respect to those mortgage broker services. (9) "Mortgage banker" means a person or entity that makes, services, or buys and sells mortgage loans and that may be required to submit audited financial statements to the United States department of housing and urban development, the United States department of veterans affairs, the federal national mortgage association, the federal home loan mortgage corporation, or the government national mortgage association.
32-9-109. Experience requirements. (1) Except as provided in 32-9-111: (a) an individual applying for a license as a mortgage broker must have a minimum of 3 years of experience working as a loan originator or in a related field; and (b) an individual applying for a license as a loan originator must have a minimum of 6 months of experience working in a related field.
32-9-110. Examination requirements. (1) Except as provided in 32-9-111, all individuals seeking a mortgage broker's license and individuals seeking a loan originator's license shall submit to an examination provided for by the department.
32-9-111. Exception to experience and examination requirements. A person providing services as a mortgage broker or an individual acting as a loan originator on or before December 31, 2002, must be licensed by the department in the same capacity as that person was operating on or before December 31, 2002. On or after July 1, 2004, the person or individual shall apply to the department for the appropriate license, pay the required fees, and have the application approved by the department. A person or individual entitled to licensure under this section is not subject to the experience requirements of 32-9-109 or the examination requirements of 32-9-110.
32-9-121. In-state office requirement -- records maintenance -- advertising requirement. (1) A person or entity licensed as a mortgage broker shall maintain at least one physical office located in this state either on its own accord or in conjunction with another licensed mortgage broker or regulated lender located in this state. Licensees shall maintain copies of residential mortgage loan files and trust account records at the Montana office location where services are provided. Each office location must have at least one phone line. Licensees shall pay state income tax on all income earned in Montana.
32-9-122. Requirement for designated manager. (1) A mortgage broker that is not a sole proprietorship shall designate to the department a licensed mortgage broker within its organization as the designated manager of the organization. (4) "Designated manager" means a person employed by a mortgage broker entity, other than a sole proprietorship, as the person responsible for operating the business at the location where the person is employed. A designated manager must be licensed as a mortgage broker
32-9-123. Irrevocable letter of credit or surety bond -- notice of legal action. (1) Each licensee other than a loan originator shall maintain at all times an irrevocable letter of credit or surety bond, naming the department as a beneficiary, in the amount of $25,000 for each location identified in the application for licensure.
32-9-125. Trust accounts -- fees other than bona fide third-party fees. (1) Every mortgage broker doing business in this state shall: (a) maintain a trust account at a financial institution located in this state whose deposits or shares are insured, and the trust account funds may not be commingled with any other funds of the mortgage broker; (b) deposit into the trust account any bona fide third-party fee that the mortgage broker receives unless the borrower pays the bona fide third party directly; and (c) pay third-party fees to a bona fide third party from the mortgage broker's trust account unless the borrower pays the bona fide third party directly.

 

 OR

 

 

 

 

 

NV

 Oregon: Prior to employing a loan originator, a licensee must conduct a criminal records check of the person, searching federal records and all state records where the person resided in the past 10 years and certify to the Division that the licensee is in compliance with the new law. Also, filing fees have increase from $250 to $500. Each loan officers must pass a course and exam within 6 months of hire by the licensee.

Nevada: AB 490 creates the Division of Mortgage Lending (MLD) and the office of
Commissioner of Mortgage Lending, within the Department of Business and Industry.
The MLD will be headed by the Commissioner of Mortgage Lending (MLC). Pending appointment of a Commissioner of Mortgage Lending, the Commissioner of Financial Institutions will act as the MLC.
Licensing of Mortgage Agents: AB 490 requires that mortgage agents employed by mortgage brokers licensed pursuant to NRS Chapter 645B become licensed on or before July 1, 2004. Until that date, existing provisions regarding the registration of mortgage agents will remain in effect.1 Registration requirements for mortgage agents will expire on July 1, 2004. Beginning October 1, 2003, the Commissioner of Mortgage Lending will accept applications for, and issue licenses for mortgage agents pursuant to Section 27 of AB 490. Any such license issued before July 1, 2004 will not become effective until July 1, 2004, and will expire at a time to be determined by the new Commissioner, most likely one (1) year after date of issuance. The fee for any license effective for less than one year will be prorated in an appropriate manner by the Commissioner of Mortgage Lending. See, Section 87 of AB 490. You will be provided with additional information regarding application fees and forms as it becomes available. HUD-VA-Fannie Mae License Exemption repealed: Section 36 of AB 490 amends NRS 645B.015 to, in effect, repeal the category 6 exemption: 6. Any firm or corporation: (a) Whose principal purpose or activity is lending money on real property which is secured by a mortgage; (b) Approved by the Federal National Mortgage Association as a seller and servicer; and (c) Approved by the Department of Housing and Urban Development and the Department of Veterans Affairs.

   TX  Texas: Constitutional Amendment Adopted by Voters: In addition to authorizing home equity lines of credit, mortgage brokers were added to the list of persons authorized to make home equity loans. Previously, in order to make home equity loans, mortgage brokers had to obtain a second lien license from the Office of the Consumer Credit Commissioner. Under the constitutional amendment, brokers can make home equity loans without holding an OCCC license. Effective 9/1/03, applicants for a TX Mortgage Broker or Loan Officer licenses will be required to pass an exam and fees increase to $280 for mortgage brokers & $155 for loan officers & a $20 fee to the Mortgage Broker Recovery Fund & a $39 fee to cover the cost of an FBI / DPS criminal background history check; also, Mortgage Bankers currently exempt must file a Registration and pay a $500 fee to stay exempt. Registration will begin in September 2003, via new on-line Internet registration system for mortgage bankers. The Act requires companies or business entities to register. It does not require loan originators to obtain individual licenses. Question: If the exam isn’t available yet, can an application still be processed if sent after September 1, 2003? TSLD will issue a Provisional license to any applicant otherwise qualified for a license. The Provisional license will be issued for a period long enough for the test mechanism to be put in place and for the applicant to study for, and take, the test. The Provisional license will expire if the “licensee” does not submit a certificate of completion within the provisional period of licensure.
   KY  Kentucky: Effective 6/24/03, KY mtg brokers must have a physical office in KY, HUD Exempt lenders must make application with KY to establish eligibility for such exemption, Licensing exemption for an independent contractor that solicits mtg loans for only one broker or lender has been eliminated and the 5 or less mtg loans permitted without a license are not permitted until notice has been given to the KY Dept of Fin Inst.; effective 7/1/04, loan officers must be individually licensed and take a 12 hour continuing education course.MEMO From: David Coyle, Director: Date: December 3, 2003: To clarify the December 1, 2003 notice that you received, please read the following: (A) If you only have one location that is originating or brokering loans on Kentucky real estate and that location has already claimed its exemption, do not claim another exemption for that location. (B) All HUD approved branches of your company that are originating or brokering Kentucky loans must now claim their exemptions, in addition to your corporate office. Exemption applications and $150 fees are required for each of these branch offices. (C) The Corporation must obtain a mortgage company license from this Department if you have branch offices that are (a) not located in Kentucky, (b) not HUD approved, and (c) wish to originate or broker Kentucky Loans. (D) All branch offices located in Kentucky that are not HUD approved must obtain Kentucky licenses. If you have claimed an exemption in error, the money will be refunded in the near future. As a reminder, all individuals making or brokering Kentucky loans from HUD exempt locations must register with the Department by June 30, 2004. Instructions and online registration will be available on our website by year-end. NEWS ALERT: ALTHOUGH YOU MAY BE REGISTERED ON-LINE AS HUD EXEMPT FROM LICENSING YOUR MORTGAGE COMPANY, YOU ARE STILL REQUIRED TO OBTAIN LOAN OFFICER LICENSES FOR ALL LOAN OFFICERS WHO ORIGINATE KY MORTGAGE LOANS
   LA  Louisiana: Effective August 15, 2003, Exemptions due to Government Approvals [FNMA, GNMA, HUD, VA] have been eliminated.
   OK  Oklahoma: Effective 7/1/03, OK mtg brokers must have a physical office in OK, have 3 years of experience in last 5 years or take a course AND take and pass a written exam; LOAN OFFICERS MUST BE LICENSED, have 18 months of experience AND take and pass a written exam; BEWARE OF LOSS OF HUD EXEMPTION BECAUSE EXEMPTION APPLIES ONLY IF YOU DO HUD LOANS EXCLUSIVELY [WHICH NO ONE DOES].
   UT  Utah: Effective 1/1/04, individual applicants [Loan Officers] must pass an approved examination and have met all continuing education requirements during the two years prior to application.
   AR  Arkansas: Effective 1/1/04, AR Fair Mortgage Lending Act becomes effective: Highlights: Mortgage banker, mortgage broker and loan officer licenses all of which replace mortgage loan company and loan broker licenses; mortgage banker: $100,000 surety bond and $25,000 net worth, $750 application fee; mortgage broker: $50,000 surety bond and $25,000 net worth, $750 application fee; loan officer: $50 application fee and can work for only one broker or banker [loan officers have until 7/1/04 to register]
   NH  New Hampshire: Effective July 1, 2003, License applicants, upon application, and licensed first mortgage lenders, upon filing annual reports, must submit a list of individuals acting as originators for the licensee [list to contain originator's work address] An originator is an individual who is employed or retained and supervised by a licensee to negotiate, solicit, arrange, or find a mortgage loan. An individual may not act as an originator for multiple licensees.
 

 IL

ND

VA

 llinois: Effective July 1, 2003, IL increased the now-annual license fee amount from $800 to $1,200 for the first year and raised the investigation fee from $1,000 to $1,500 per year and the net worth requirement increased from $100,000 to $150,000

North Dakota: Effective 8/1/03, annual license fee increased from $200 to $300 and appliction investigation fee increased from $300 to $400.

Virginia: Effective 7/1/03, the 10 or less lender exemption without a license has been reduced to 3 mtg loans in a 12 month period.