Nevada Adopts Foreclosure Consultant, Loan Modification Consultant and Foreclosure Purchaser Regulations
Posted:
9/15/2009
Nevada adopted rules with respect to foreclosure consultants, loan modification consultants and foreclosure purchasers. The rules set forth the content to be included in a written contract, provide for rescission and cancellation of a contract and establish additional prohibited acts. The rules generally became effective August 17, 2009; however the provisions affecting foreclosure purchasers do not become effective until October 1, 2009.
Georgia Adopts Residential Mortgage Act Rules
Dated:
9/16/2009 Posted:
9/16/2009
Georgia adopted rules amending the Residential Mortgage Act. The new rules set forth the surety bond amount required for loan originators; establish mortgage loan originator renewal fees; clarify mortgage loan originator continuing education requirements; and establish mortgage loan originator recordkeeping requirements. The rules went into effect August 17, 2009.
Connecticut Amends Provisions Pertaining to Nonprime Home Loan
Dated:
9/18/2009 Posted:
9/18/2009
Connecticut passed a bill amending provisions pertaining to nonprime home loans. Under the bill, the definition of "nonprime home loan" is amended and nonprime home loan restrictions with respect to negative amortization, payment schedules, call provisions and default charges are established. In addition, the bill makes mortgage fraud a crime. The bill generally becomes effective October 1, 2009.
This alert was originally published on 08/12/2009 and is being re-sent as a reminder regarding legislation to be effective within the next two weeks.
Illinois Requires Licensing of Mortgage Loan Originators
Dated:
9/10/2009 Posted:
9/10/2009
Illinois passed a bill requiring the licensing of loan originators. Under the bill, mortgage loan originators and loan processors of underwriters acting as independent contractors must obtain a license under the Residential Mortgage License Act of 1987, unless exempt. The bill also establishes loan originator requirements with respect to education, exemptions, fees, renewals, bonds and notifications. In addition, the bill requires all application forms, solicitations and advertisements to contain the NMLS unique identifier of the person originating the mortgage loan. The bill became effective on July 31, 2009; however, mortgage loan originators and loan processors of underwriters acting as independent contractors have until July 31, 2010 to obtain a license.
Illinois Requires Notice to Occupants of Foreclosed Property
Dated:
9/10/2009 Posted:
9/10/2009
Illinois passed a bill requiring written notice to occupants of foreclosed property. Under the bill, the purchaser of the property or the holder of the certificate of sale or deed must notify all known occupants of the property that the purchaser or holder has acquired the property. The bill becomes effective October 29, 2009.
Louisiana Makes Residential Mortgage Fraud a Crime
Dated:
7/29/2009 Posted:
7/29/2009
Louisiana passed a bill making residential mortgage fraud a crime. Under the bill a person who commits residential mortgage fraud is subject to up to 10 years imprisonment and a $100,000 fine. In addition, a person found guilty of residential mortgage fraud may be ordered to pay full restitution to the victim and any other person who has suffered a financial loss as a result of the offense. The bill becomes effective August 15, 2009.
Missouri
Missouri Requires Notice to Tenants Following Foreclosure Sale
Posted:
7/30/2009
Missouri passed a bill requiring purchasers of foreclosed property to provide a notice to any tenants of the property. Under the bill, if foreclosed property is occupied by a residential tenant, the new owner must give the occupant a notice that informs the tenant that: the sale has occurred; the purchaser is the new owner; and the occupant has not less than 10 business days to vacate the premises if the new owner seeks possession from the occupant. The bill also prohibits an unlawful detainer action or any other action seeking possession from being commenced against the occupant within the 10 business days following the date of notice. The bill becomes effective August 29, 2009.
New Jersey
New Jersey Amends Foreclosure Forbearance Provisions Pertaining to High Risk Mortgage Loans
Posted:
7/30/2009
New Jersey passed a bill amending provisions pertaining to the 6 month foreclosure forbearance period required for "high risk mortgage" loans. Under the bill, lenders must notify borrowers of the right to obtain a 6 month period of forbearance. The bill also requires a borrower to make a written request to the lender in order to receive the forbearance. The bill went into effect July 2, 2009.
Oklahoma
Oklahoma Adopts Emergency S.A.F.E. Act Rules
Posted:
7/30/2009
Oklahoma adopted emergency S.A.F.E. Act rules. The rules require individuals and entities licensed under the Mortgage Broker Licensure Act to obtain a license under the Oklahoma Secure and Fair Enforcement for Mortgage Licensing Act prior to December 31, 2009. The rules also require license applications and fees to be submitted through the NMLS. In addition, the rules amend licensing and notification requirements. The rules became effective July 12, 2009.
Oregon
Oregon Imposes Restrictions on Negative Amortization Loans
Dated:
7/30/2009 Posted:
7/30/2009
Oregon passed a bill imposing restrictions on negative amortization loans. Under the bill, mortgage bankers, brokers and loan originators are prohibited from negotiating or making a negative amortization loan without regard to the borrower's ability to repay the loan. The bill also restricts prepayment penalties on negative amortization loans to the first 24 months of the loan and prohibits a lender from collecting any prepayment penalty on an existing negative amortization loan in return for or as a consequence of refinancing the loan. The bill becomes effective January 1, 2010.
Oregon Requires Notice to Tenants of Foreclosed Property
Dated:
7/29/2009 Posted:
7/29/2009
Oregon passed a bill requiring notice to tenants of foreclosed property. Under the bill, a "Notice to Tenants" must be included with the Notice of Sale. The bill sets forth the exact language of the notice. The bill becomes effective August 23, 2009.
District of Columbia Repeals and Readopts Mortgage Lenders and Brokers Act Rules
Posted:
7/6/2009
The District of Columbia repeals and readopts rules under the Mortgage Lenders and Brokers Act. The new rules implement the amendments made to the Mortgage Lenders and Brokers Act by Bill 1021 which provide for the District of Columbia's compliance with the federal SAFE Act. The rules amend mortgage loan originator requirements with respect to education, fees, renewals, examinations, notifications, escrow accounts, disclosures and recordkeeping. The rules also amend mortgage lender and broker requirements with respect to fees, net worth, bonds, renewals, disclosures and recordkeeping. The rule became effective June 5, 2009.
District of Columbia Requires Mortgage Loan Originator Licensing
Posted:
7/6/2009
The District of Columbia passed a bill requiring mortgage loan originator licensing. Under the bill mortgage loan originators are required to obtain a license under the Mortgage Lenders and Brokers Act prior to engaging in business, unless exempt. The bill also establishes loan originator requirements with respect to education, fees, exemptions, renewals, advertising and disclosures. In addition, amends mortgage lender and broker requirements with respect to bonds, net worth, notification, exemptions, renewals, disclosures, and fees. The bill becomes effective immediately.
Hawaii
Hawaii Allows Electronic Recording of Documents
Dated:
7/8/2009 Posted:
7/8/2009
Hawaii passed a bill allowing documents to be electronically recorded pursuant to the Uniform Real Property Electronic Recording Act. The bill becomes effective July 1, 2009.
Hawaii Enacts Mortgage Servicers Act
Dated:
7/8/2009 Posted:
7/8/2009
Hawaii passed a bill enacting the Mortgage Servicers Act. Under the bill, a person may not engage in the business of mortgage servicing without a license, unless exempt. The bill also establishes mortgage servicer requirements with respect to fees, renewals, notification, disclosures and default. The bill becomes effective July 1, 2010.
Maine
Maine Enacts Uniform Power of Attorney Act
Dated:
7/7/2009 Posted:
7/7/2009
Maine passed a bill enacting the Uniform Power of Attorney Act. The Uniform Power of Attorney Act is modeled upon the Uniform Power of Attorney Act drafted and approved by the National Conference of Commissioners on Uniform State Laws. The bill becomes effective July 1, 2010.
Maryland Requires Foreclosure Notices for Occupants of Residential Property in Foreclosure
Dated:
6/1/2009 Posted:
6/1/2009
Maryland passed a bill requiring foreclosure notices for occupants of residential property in foreclosure. Under the bill, an "Important Notice" must be sent to the address of the residential property at the time the order to docket or complaint to foreclose is filed. A "Notice of Impending Foreclosure Sale" must also be sent to the address of the property not earlier than 30 days and not later than 10 days prior to the date of sale. In addition, the purchaser of the property is required to send an "Important Eviction Notice" to the address of the property after the entry of a judgment awarding possession and prior to any attempt to execute the writ of possession. The bill went into effect May 19, 2009.
Washington
Washington Amends Mortgage Broker Practices Act
Posted:
6/2/2009
Washington passed a bill amending the Mortgage Broker Practices Act. Under the bill, the surety bond required for licensing is amended to reflect the annual loan origination volume of a mortgage broker rather than the average number of loan originators employed by the mortgage broker. The bill also requires loan originators to complete 20 hours of education prior to licensing. In addition, the bill amends requirements with respect to renewals, continuing education, examinations, exemptions and notifications. The bill generally becomes effective July 26, 2009; however the surety bond and pre-licensing education requirements become effective January 1, 2010.
Washington Requires Loan Originator Licensing under the Consumer Loan Act
Posted:
6/2/2009
Washington passed a bill requiring mortgage loan originators and loan processor independent contractors to obtain a license under the CLA, unless exempt. Under the bill loan originator provisions are established with respect to education, fees, renewals and exemptions. The bill also amends mortgage lender provisions with respect to bonds, exemptions, renewals, advertising and notifications. In addition, the bill requires the NMLS unique identifier of the loan originator to be displayed on all application forms, solicitations and advertisements. The bill generally becomes effective July 26, 2009; however, provisions pertaining to loan originators do not become effective until July 1, 2010.
Illinois
Illinois Requires "Grace Period Notice" Prior to Commencing Foreclosure Actions
Posted:
5/6/2009
Illinois passed a bill requiring mortgagees to deliver a "Grace Period Notice" prior to commencing foreclosure actions on owner-occupied residential real estate. Under the bill, no foreclosure action may be commenced until 30 days have elapsed from the time the "Grace Period Notice" is mailed. In addition, if an approved counseling agency provides notice that the borrower is seeking counseling services, then the lender must wait an additional 30 days before commencing foreclosure proceedings. The bill went into effect April 06, 2009.
Maryland
Maryland Amends the Mortgage Originator Law and the Maryland Mortgage Lender Law
Dated:
5/7/2009 Posted:
5/7/2009
Maryland passed a bill amending the Mortgage Originator Law (MOL) and the Maryland Mortgage Lender Law (MMLL). Under the bill, mortgage loan originators are required to pass an examination prior to obtaining a license under the MOL and must be covered by a surety bond. The bill also amends loan originator initial education, continuing education, renewal, and notification requirements. In addition, the bill requires lenders, brokers and servicers licensed under the MMLL to submit a "report of condition" to the NMLS on an annual basis. The bill becomes effective July 1, 2009.
Mississippi
Mississippi Amends Mortgage Consumer Protection Law
Posted:
5/6/2009
Mississippi passed a bill amending the Mortgage Consumer Protection Law (MCPL). Under the bill, loan originators and loan processors or underwriters acting as independent contractors are required to obtain a license. The bill also amends education, bond, renewal, exemption, notification, and advertising requirements. In addition, the bill changes the name of the MCPL to the Mississippi S.A.F.E. Mortgage Licensing Act of 2009. The bill becomes effective July 31, 2009.
Washington
Washington Enacts Reverse Mortgage Act
Posted:
5/8/2009
Washington passed a bill enacting the Washington State Reverse Mortgage Act. The Reverse Mortgage Act governs the making of proprietary reverse mortgage loans. A proprietary reverse mortgage loan is defined as any reverse mortgage loan product that is not a HECM loan or other federally guaranteed or insured loan. Under the bill, a number of requirements and restrictions with respect to proprietary reverse mortgage loans are established, including requirements and restrictions with respect to: disclosures; loan maturity; appraisals; prepayment penalties; right of rescission; payment advances; annuities; and borrower counseling. In addition, the bill requires lenders licensed under the Consumer Loan Act to meet minimum net worth requirements, maintain an irrevocable letter of credit, and obtain mortgage loan product pre-approval prior to offering proprietary reverse mortgage loans. The bill becomes effective July 26, 2009.