State Law Update: Michigan E-Signature Rule, Numerous Mortgage Licensing Changes

Mortgage Licensing Electronic Signatures

Michigan Court Rule Change Allows Electronic Signatures. Recently, the Michigan Supreme Court approved a rule change that allows the use of electronic signatures for any document filed in the state court system, including any signature required by a law or court rule to be notarized or made under oath. Several States Adjust Mortgage Registration, Licensing Regulations. Recently, five states amended their laws to clarify the scope of their mortgage-related registration and licensing requirements. First, New Hampshire passed House Bill 247, which exempts from licensing requirements mortgage bankers and brokers who negotiate three or fewer residential mortgage loans in a calendar year. The bill will take effect July 13, 2012. New Hampshire also enacted House Bill 408 to provide an exemption for attorneys, which took effect on May 29, 2012. Second, Louisiana enacted, effective immediately, House Bill 508, which defines "regularly engaged" to clarify thresholds for activity requiring licensure as a mortgage loan originator or mortgage broker or lender. Third, Mississippi enacted Senate Bill 2897, which makes several changes to the state’s S.A.F.E. Mortgage Act including a change to the definition of mortgage loan originator to exclude certain activities. The changes go into effect July 1, 2012. Fourth, in Michigan, the Governor recently signed Senate Bill 908, which immediately amends the Mortgage Loan Originators Licensing Act to require, among other things, that a person have an approved sponsor in the NMLS in order to be licensed as a mortgage loan originator. Finally, New York enacted Senate Bill 3779, which as of January 1, 2013 will exempt from licensing any individual, person, partnership, association, corporation or other entity which makes three or fewer loans in a calendar year and no more than five in a two year period, provided that no such mortgage loans were solicited, processed, placed or negotiated by a mortgage broker, mortgage banker or exempt organization. New York also extended again its emergency rules regarding mortgage loan originator licensing, this time through August 12, 2012.