HOUSE BILL NO. 570

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Bill Status



H0570...........................................................by BUSINESS
RESIDENTIAL MORTGAGE - AGENTS - Amends existing law relating to residential
mortgage practices to provide an exemption for agents who act under an
exclusive contract with no more than one licensee on a full-time or
part-time basis.
                                                                        
01/28    House intro - 1st rdg - to printing
01/29    Rpt prt - to Bus
02/18    Rpt out - rec d/p - to 2nd rdg
02/19    2nd rdg - to 3rd rdg
02/23    3rd rdg - PASSED - 67-0-3
      AYES -- Andersen, Barraclough, Barrett, Bauer, Bayer, Bedke, Bell,
      Black, Block, Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins,
      Cuddy, Deal, Denney, Douglas, Eberle, Edmunson, Ellsworth, Eskridge,
      Field(18), Field(23), Gagner, Garrett, Harwood, Henbest, Jones,
      Kellogg, Kulczyk, Lake, Langford, Langhorst, Martinez, McGeachin,
      McKague, Meyer, Miller, Mitchell, Moyle, Naccarato, Nielsen,
      Pasley-Stuart, Raybould, Ridinger, Ring, Ringo, Roberts, Robison,
      Rydalch, Sali, Sayler, Schaefer, Shepherd, Shirley, Skippen,
      Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail, Wills, Mr.
      Speaker
      NAYS -- None
      Absent and excused -- Crow, Jaquet, Wood
    Floor Sponsor - Gagner
    Title apvd - to Senate
02/24    Senate intro - 1st rdg - to Com/HuRes
03/05    Rpt out - rec d/p - to 2nd rdg
03/08    2nd rdg - to 3rd rdg
03/17    3rd rdg - PASSED - 34-0-1
      AYES -- Andreason, Bailey, Brandt, Bunderson, Burkett, Burtenshaw,
      Calabretta, Cameron, Compton, Darrington, Davis, Gannon, Geddes,
      Goedde, Hill, Ingram, Kennedy, Keough, Little, Lodge, Malepeai,
      Marley, McKenzie, McWilliams, Noh, Pearce, Richardson, Schroeder,
      Sorensen, Stegner, Stennett, Sweet, Werk, Williams
      NAYS -- None
      Absent and excused -- Noble
    Floor Sponsor - Goedde
    Title apvd - to House
03/18    To enrol - Rpt enrol - Sp signed
03/19    Pres signed - To Governor
03/24    Governor signed
         Session Law Chapter 314
         Effective: 07/01/04

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-seventh Legislature                 Second Regular Session - 2004
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 570
                                                                        
                                   BY BUSINESS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO RESIDENTIAL MORTGAGE PRACTICES; AMENDING  SECTION  26-3103,  IDAHO
  3        CODE,  TO  PROVIDE AN EXEMPTION FOR AGENTS WHO ACT UNDER AN EXCLUSIVE CON-
  4        TRACT WITH NO MORE THAN ONE LICENSEE ON A FULL-TIME OR PART-TIME BASIS.
                                                                        
  5    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  6        SECTION 1.  That Section 26-3103, Idaho Code, be, and the same  is  hereby
  7    amended to read as follows:
                                                                        
  8        26-3103.  EXEMPTIONS. The provisions of this chapter do not apply to:
  9        (1)  Agencies  of  the  United  States  and agencies of this state and its
 10    political subdivisions;
 11        (2)  An owner of real property who offers credit secured by a contract  of
 12    sale, mortgage or deed of trust on the property sold;
 13        (3)  A  loan that is made by a person to an employee of that person if the
 14    proceeds of the loan are used to assist the employee in  meeting  his  housing
 15    needs;
 16        (4)  Any  person licensed or chartered under the laws of this state or the
 17    United States as a bank, regulated lender licensed under the Idaho credit code
 18    and regularly engaged in making regulated  consumer  loans  other  than  those
 19    secured by a security interest in real property, savings and loan association,
 20    credit union, or trust company;
 21        (5)  Any person licensed or chartered under the laws of any other state as
 22    a bank, savings and loan association, or credit union;
 23        (6)  Attorneys, or persons licensed under chapter 2, title 54, Idaho Code,
 24    provided  that  the  license held by such attorneys or persons is in an active
 25    status;
 26        (7)  Persons employed by licensees on a full-time basis or persons who are
 27    employed by no more than one (1) licensee on a part-time basis or  agents  who
 28    act  under an exclusive contract with no more than one (1) licensee on a full-
 29    time or part-time basis;
 30        (8)  Any person or entity not making more than five  (5)  loans  primarily
 31    for  personal,  family,  or  household use and primarily secured by a security
 32    interest on residential real property, with his own funds for his own  invest-
 33    ment, in any period of twelve (12) consecutive months; nor
 34        (9)  Any person who funds a residential mortgage loan which has been orig-
 35    inated  and  processed  by  a  licensee  or  by an exempt person, who does not
 36    directly or indirectly solicit borrowers in this state for the purpose of mak-
 37    ing residential mortgage loans, and who does not participate in  the  negotia-
 38    tion  of residential mortgage loans with the borrower. For the purpose of this
 39    subsection, "negotiation of residential mortgage loans" does not include  set-
 40    ting  the  terms  under  which a person may buy or fund a residential mortgage
 41    loan originated by a licensee or exempt person.

Statement of Purpose / Fiscal Impact


                STATEMENT OF PURPOSE
                       RS13695
This legislation amends the statutes relating to mortgage
brokers and lenders to clarify that, for the purposes of
licensing, all employees and agents will be treated in the
same way as employees. In the 2003 session the legislature
passed HB 28 that provided that licensees are responsible on
their bond for the actions of both their employees and their
agents and provided a definition, for the purposes of the
statute of the term "agent".  Since that time questions have
arisen concerning the application of the licensing
provisions of the statute to people who perform the
functions of employees but who work under contracts that
make them independent agents. This legislation amends the
exemption section of the statute to make clear that an agent
serving a single employer is exempt to the same extent as if
he or she were an employee.
      
                      FISCAL IMPACT
                                
There is no fiscal impact to the state or to local
government. 
                                 
                                   
    
CONTACT: Mike Brassey
         336-7930
    
STATEMENT OF PURPOSE/FISCAL NOTE                H 570