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Missouri amends mortgage broker licensing requirements
On July 6, the Missouri governor signed SB 599, which, among other things, modifies the state’s mortgage broker licensing requirements. Specifically, the legislation (i) provides that a prelicensing education course that is completed by an applicant will not satisfy the state’s education requirement if the course precedes an application “by a certain period” as established by the Nationwide Multi-State Licensing System and Registry (NMLSR); (ii) requires persons with various financial relationships with a business applicant for a residential mortgage loan broker license to furnish fingerprints to the NMLSR for submission to the FBI and any other authorized government entity for a background check; and (iii) allows the Director of the Division of Finance to waive the requirement that residential mortgage loan brokers maintain at least one full-service office in the state of Missouri for persons “exclusively engaged in the business of loan processing or underwriting,” or providing mortgage loan servicing. The legislation is effective August 28.
Florida Office of Financial Regulation issues emergency order regarding certain filing deadlines
On June 26, the Florida Office of Financial Regulation issued Emergency Order 2020-04, which extends filing deadlines for certain licenses. Specifically, any deadlines falling in May 2020 for mortgage brokers and lenders to file mortgage call reports, money services businesses to file quarterly reports, and for both to file financial reports have been suspended and tolled for a period of 30 days from the existing filing deadlines, unless extended by subsequent order. Additionally, the deadline occurring in the months of March, April, or May for any holder of a securities registration to file an annual updating amendment or financial statement is suspended and tolled through June 30, 2020, unless extended by subsequent order.
Colorado regulator reminds real estate businesses of business restrictions
On June 11, the Colorado Department of Regulatory Agencies (DORA) issued a reminder regarding the Safer at Home guidance for real estate businesses. In light of the various sources of guidance and versions of public health orders, DORA advises that real estate businesses and professionals review the Safer at Home: Additional Guidance for Real Estate Brokers & Servicers document, which responds to frequently asked questions related to real estate services.
Idaho Department of Finance extends work from home guidance for its licensees and registrants
On May 22, the Idaho Department of Finance extended temporary work from home guidance previously issued to Idaho mortgage brokers and lenders, mortgage loan originators, regulated lenders, title lenders, payday lenders, and collection agency licensees and registrants. The original guidance, previously covered here, permits employees to work from home where the residence is not a licensed branch. The guidance is extended through September 1, 2020.
New Jersey Department of Banking extends filing deadlines for certain annual reports
On May 12, the New Jersey Department of Banking Insurance issued a bulletin regarding the extension of deadlines for certain entities and individual regulated by the Division of Banking to file annual reports. Certain enumerated licensees, including check cashers, insurance premium finance companies, motor vehicle installment sellers, and money transmitters, are granted an extension until June 1 to file annual reports. However, licensees must file their subsequent annual report by April 1, 2021. Mortgage lenders and mortgage brokers who are required to file an annual report on or before May 1, are also granted an extension to June 1. The next annual report must be filed by May 1, 2021.
Louisiana Office of Financial Institutions issues emergency declarations to non-depository entities
On May 1, the Louisiana Office of Financial Institutions issued emergency declarations for residential mortgage lenders, brokers and originators, check cashers, lenders or brokers licensed pursuant to the Louisiana Consumer Credit Law and the Louisiana Deferred Presentment and Small Loan Act, pawnbrokers, and repossession agents and bond for deed escrow agents. Such entities are granted the authority to temporarily close licensed locations within Louisiana or to temporarily close and/or relocate to another location within the state. Mortgage loan originators are permitted to work from home, whether located in Louisiana or another state, even if the home is not registered with the LOFI. The declarations also provide instructions for notifying the LOFI of a temporary location change. The declarations expire on May 15, 2020, unless renewed by further declaration of the commissioner.
South Carolina regulator issues guidance to mortgage brokers
On April 28, the South Carolina Department of Consumer Affairs issued interim guidance to mortgage brokers on working remotely from unlicensed locations and extended the deadline for submitting the 2019 mortgage log. The department clarified that, until May 31, 2020, licensed mortgage loan originators are permitted to work from home, whether in South Carolina or another state, even if the home is not a licensed branch. The department also reported that it has deferred the filing deadline for the 2019 mortgage log required of mortgage broker companies until June 1, 2020.
District of Columbia permits mortgage brokers and originators to work from home, delays reporting deadlines
On March 27, the District of Columbia Department of Insurance, Securities and Banking issued guidance to mortgage lenders, mortgage brokers and mortgage loan originators permitting them to work from non-licensed branches or locations during the Covid-19 outbreak. The guidance requires the maintenance of appropriate data protection and cybersecurity measures when working remotely. The department also extended the deadline for filing annual reports from March 31 to June 1. Finally, the guidance notes that all evictions of tenants and foreclosed homeowners on or before May 1 are stayed, and required mediation hearings are extended from 90 days to 120 days following the date of mailing of the notice of default.
Idaho regulator issues “Work from Home” guidance
On March 12, the Idaho Department of Finance issued guidance to its licensees and registrants—including mortgage brokers/lenders, mortgage loan originators, regulated lenders, title lenders, payday lenders and collection agencies—permitting employees to work from home even where the residence is not a licensed branch. The Department stated it will not take action against a licensee or registrant so long as the licensable activities meet specified data security and privacy requirements, and the licensee or registrant avoids advertising the unlicensed address or phone number, meeting consumers at the residence, or otherwise holding out or suggesting that the residence is a licensed location. The guidance is effective until June 30.
New Jersey amends mortgage statute, includes “transitional mortgage loan originator license”
On August 24, New Jersey Governor Phil Murphy signed AB 2035, which amends the New Jersey Residential Mortgage Lending Act and certain related statutes. Among other technical and clarifying changes, the amendments create a framework for the issuance of a “transitional mortgage loan originator license,” which would allow an “out-of-state mortgage loan originator” or a “registered mortgage loan originator” to obtain temporary authority to engage in the business of mortgage loan origination in New Jersey for 120 days before obtaining a New Jersey mortgage loan originator license. The amendments provide specific definitions for what constitutes a “registered mortgage loan originator” and what constitutes an “out-of-state mortgage loan originator.” Specifically, the amendments define an “out-of-state mortgage loan originator” as an individual who is registered with Nationwide Mortgage Licensing System and currently holds a valid mortgage loan originator license issued under the law of any other state or jurisdiction in the country. And the law amends the definition of “registered mortgage loan originator” to include a requirement that such a person must be validly registered as a mortgage loan originator with a depository institution employer for at least the one-year period prior to applying for licensure under the act.
The amendments revise the types of fees that residential mortgage lenders have the right to charge related to the origination, processing, and closing of a mortgage loan: (i) application fee; (ii) origination fee; (iii) lock-in fee; (iv) commitment fee; (v) warehouse fee; (vi) discount points; and (vii) fees necessary to reimburse the lender for charges imposed by third parties, such as appraisal and credit report fees. The amendments also create a different list of fees a mortgage broker may charge in connection with the brokering of any mortgage loan transaction.
The amendments take effect 90 days after the bill’s enactment.