Arkansas Amends Fair Mortgage Lending Act

On April 1, Arkansas Governor Mike Beebe signed HB 1881, a bill that amends the Arkansas Fair Mortgage Lending Act. In general, the bill amends the Act’s definitions, surety bond requirements, license application procedures, reporting requirements, prohibited activities, and penalties. Specifically, the bill revises the statutory definition of “mortgage loan” to mean “a loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, reverse mortgage, or other equivalent consensual security interest encumbering” either (i) a “dwelling,” as defined by the Truth in Lending Act or (ii) residential real estate that is constructed or intended to be constructed as a dwelling. The bill also removes a licensing exemption for persons who only broker, make, or service nonresidential mortgage loans. Regarding licensee duties, the bill requires the inclusion of the full name, address, and telephone number of the licensee in all solicitations and advertisements. The bill also requires the unique identifier of a person soliciting or originating a mortgage loan to be clearly shown on all mortgage loan application forms, solicitations, advertisements, business cards, websites, and related documents.