Oklahoma Amends Mortgage Licensing Act; Adds Exemption for Depository Institutions

On May 28, Oklahoma Governor Brad Henry signed HB 2831, a law that amends the Oklahoma Mortgage Licensing Act (MLA). The law will:

• Expressly exempt depository institutions and their subsidiaries from registering under the MLA; 
• Require all applicants for a mortgage loan originator license to be sponsored by a licensed mortgage broker. The Oklahoma Commission on Consumer Credit will establish regulations regarding the sponsors of mortgage loan originators; and
• Modify the administrative procedures provided by the MLA by creating a Hearing Examiner to consider alleged MLA violations and to propose findings to the Administrator of Consumer Credit, who retains the power to issue final agency orders.

The amendments take effect July 1, 2010.