2006 Legislation
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HOUSE BILL NO. 714 – Mortgate brokers/multistate license

HOUSE BILL NO. 714

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Bill Status



H0714aa,aaS................................................by STATE AFFAIRS
MORTGAGE BROKERS - Amends existing law to authorize the director of the
Department of Finance to participate in the establishment and
implementation of a multistate automated licensing system for mortgage
brokers and lenders and individual mortgage loan originators; to require
criminal history record checks; and to exempt certain individuals and
persons from information and participation requirements.
                                                                        
02/22    House intro - 1st rdg - to printing
02/23    Rpt prt - to Bus
03/02    Rpt out - to Gen Ord
03/08    Rpt out amen - to engros
03/09    Rpt engros - 1st rdg - to 2nd rdg as amen
03/10    2nd rdg - to 3rd rdg as amen
03/15    3rd rdg as amen - PASSED - 65-1-4
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
      Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford,
      Cannon, Chadderdon, Clark, Collins, Deal, Denney, Edmunson, Eskridge,
      Field(18), Field(23), Garrett, Hart, Harwood, Henbest, Henderson,
      Jaquet, Kemp, Lake, LeFavour, Loertscher, Martinez, Mathews,
      McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen, Nonini,
      Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche,
      Rydalch, Sali, Sayler, Schaefer, Shepherd(2), Shepherd(8), Skippen,
      Smith(30), Smylie, Snodgrass, Stevenson, Trail, Wood, Mr. Speaker
      NAYS -- Smith(24)
      Absent and excused -- Crow, Ellsworth, Shirley, Wills
    Floor Sponsor - Miller
    Title apvd - to Senate
03/16    Senate intro - 1st rdg - to St Aff
03/27    Rpt out - to 14th Ord
03/28    Rpt out amen - to 1st rdg as amen
03/29    1st rdg - to 2nd rdg as amen
03/30    2nd rdg - to 3rd rdg as amen
    Rls susp - PASSED - 34-0-1
      AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett,
      Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
      Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough,
      Langhorst, Little, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce,
      Richardson, Schroeder, Stegner, Stennett, Werk, Williams
      NAYS -- None
      Absent and excused -- Sweet
    Floor Sponsor - Stegner
    Title apvd - to House
04/03    House concurred in Senate amens - to engros
04/04    Rpt engros - 1st rdg - to 2nd rdg as amen
    Rls susp - PASSED - 66-0-4
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
      Bedke, Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford, Cannon,
      Chadderdon, Clark, Collins, Deal, Denney, Edmunson, Ellsworth,
      Eskridge, Field(18), Field(23), Garrett, Hart, Harwood, Henbest,
      Henderson, Jaquet, Kemp, Lake, LeFavour, Loertscher, Martinez,
      Mathews, McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen,
      Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche,
      Rydalch, Sali, Sayler, Shepherd(8), Shirley, Skippen, Smith(30),
      Smith(24), Smylie, Snodgrass, Stevenson, Trail, Wills, Wood, Mr.
      Speaker
      NAYS -- None
      Absent and excused -- Bell, Crow, Schaefer, Shepherd(2)
    Floor Sponsor - Deal
    Title apvd - To enrol - Rpt enrol - Sp signed
04/05    Pres signed - To Governor
04/10    Governor signed
         Session Law Chapter 410
         Effective: 07/01/06

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 714
                                                                        
                                 BY STATE AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE POWERS AND  DUTIES  OF  THE  DIRECTOR  OF  THE  DEPARTMENT  OF
  3        FINANCE;  AMENDING  SECTION 26-3105, IDAHO CODE, TO AUTHORIZE THE DIRECTOR
  4        TO PARTICIPATE IN THE ESTABLISHMENT AND  IMPLEMENTATION  OF  A  MULTISTATE
  5        AUTOMATED LICENSING SYSTEM FOR MORTGAGE BROKERS AND LENDERS AND INDIVIDUAL
  6        MORTGAGE  LOAN  ORIGINATORS, TO REQUIRE CRIMINAL HISTORY RECORD CHECKS AND
  7        TO EXEMPT FROM INFORMATION AND PARTICIPATION REQUIREMENTS CERTAIN  EMPLOY-
  8        EES AND AGENTS.
                                                                        
  9    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 10        SECTION  1.  That  Section 26-3105, Idaho Code, be, and the same is hereby
 11    amended to read as follows:
                                                                        
 12        26-3105.  POWERS AND DUTIES OF DIRECTOR. (1)  In  addition  to  any  other
 13    duties imposed upon the director by law, the director shall:
 14        (1a)  Administer and enforce the provisions and requirements of this chap-
 15        ter;
 16        (2b)  Conduct investigations and issue subpoenas as necessary to determine
 17        whether  a person has violated any provision of this chapter or rules pro-
 18        mulgated under the authority of this chapter;
 19        (3c)  Conduct examinations of the books and records of licensees and  con-
 20        duct  investigations  as  necessary  and proper for the enforcement of the
 21        provisions of this chapter and the rules promulgated under  the  authority
 22        of this chapter;
 23        (4d)  Appoint  a  volunteer  advisory board which shall consist of two (2)
 24        individuals who are mortgage lenders and two (2) individuals who are mort-
 25        gage brokers;
 26        (5e)  Pursuant to chapter 52, title 67, Idaho Code, issue orders and  pro-
 27        mulgate  rules that, in the opinion of the director, are necessary to exe-
 28        cute, enforce and effectuate the purposes of this chapter;
 29        (6f)  Be authorized to set, by annual written notification  to  licensees,
 30        limits  on the fees and charges which are set forth in subsections (1) and
 31        (2) of section 26-3113, Idaho Code;
 32        (7g)  Require that all funds collected by the department under this  chap-
 33        ter  be deposited into the finance administrative account pursuant to sec-
 34        tion 67-2702, Idaho Code; and
 35        (8h)  Review and approve forms used by licensees prior  to  their  use  as
 36        prescribed by the director.
 37        (2)  The  legislature has determined that a uniform multistate administra-
 38    tion of an automated licensing system for mortgage brokers,  mortgage  lenders
 39    and  individual  mortgage  loan originators is consistent with both the public
 40    interest and the purposes of this chapter; therefore, in order to  participate
 41    in  the  establishment  and implementation of a multistate automated licensing
 42    system for mortgage brokers, mortgage lenders  and  individual  mortgage  loan
 43    originators, the director is authorized:
                                                                        
                                           2
                                                                        
  1        (a)  To waive or modify, in whole or in part, by rule or order, any or all
  2        of  the  requirements  of sections 26-3108, 26-3108A, 26-3110 and 26-3111,
  3        Idaho Code;
  4        (b)  To establish such new requirements as are necessary for the state  of
  5        Idaho  to  participate in a multistate automated licensing system upon the
  6        director's finding that each new requirement is consistent with  both  the
  7        public interest and the purposes of this chapter; and
  8        (c)  To  require  a background investigation of each applicant for a mort-
  9        gage broker, mortgage lender or loan originator license by means  of  fin-
 10        gerprint  checks  by  the  Idaho  state  police  and the FBI for state and
 11        national criminal history record checks, commencing at such time as  Idaho
 12        joins  a multistate automated licensing system for mortgage brokers, mort-
 13        gage lenders and individual mortgage loan  originators  pursuant  to  this
 14        subsection (2). The information obtained thereby may be used by the direc-
 15        tor  to  determine  the  applicant's  eligibility for licensing under this
 16        chapter. The fee required to perform the  criminal  history  record  check
 17        shall  be  borne by the license applicant. Information obtained or held by
 18        the director pursuant to this subsection (2) shall be considered confiden-
 19        tial personal information and shall be exempt from disclosure pursuant  to
 20        section 9-340C(8) and (9), Idaho Code.
 21        (d)  Nothing  in  this  section  shall  authorize  the director to require
 22        employees or exclusive agents of exempt regulated lenders as set forth  in
 23        section  26-3103(4),  Idaho Code, to submit information to, or to partici-
 24        pate in, the uniform multistate licensing system.

Amendment


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                                                     Moved by    Davis               
                                                                        
                                                     Seconded by Stegner             
                                                                        
                                                                        
                                       IN THE SENATE
                        SENATE AMENDMENT TO H.B. NO. 714, As Amended
                                                                        
  1                               AMENDMENTS TO SECTION 1
  2        On page 1 of the engrossed bill, in line 40, delete "in order to  partici-
  3    pate"  and  insert: "for the sole purpose of participating"; on page 2, delete
  4    lines 1 through 3 and insert:
  5        "(a)  To modify by rule the license renewal dates  set  forth  in  section
  6        26-3111(3) and (4), Idaho Code;";
  7    in  line  4,  following  "establish" insert: "by rule"; and in line 21, delete
  8    "(d) Nothing in" and insert:
  9        "(3)  Nothing in subsection (2) of".
                                                                        
                                          2
                                                                        
                                                     Moved by    Deal                
                                                                        
                                                     Seconded by Rusche              
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                              HOUSE AMENDMENT TO H.B. NO. 714
                                                                        
  1                                AMENDMENT TO SECTION 1
  2        On page 2 of the printed bill, delete lines 22 through 24 and insert: "any
  3    individual or person exempt under section 26-3103, Idaho Code, or employees or
  4    agents of any such exempt individual or person, to submit information  to,  or
  5    to participate in, the uniform multistate licensing system.".
                                                                        
  6                                 CORRECTION TO TITLE
  7        On page 1, delete lines 7 and 8 and insert: "TO EXEMPT CERTAIN INDIVIDUALS
  8    AND PERSONS FROM INFORMATION AND PARTICIPATION REQUIREMENTS.".

Engrossed Bill (Original Bill with Amendment(s) Incorporated)


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                  HOUSE BILL NO. 714, As Amended, As Amended in the Senate
                                                                        
                                 BY STATE AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE POWERS AND  DUTIES  OF  THE  DIRECTOR  OF  THE  DEPARTMENT  OF
  3        FINANCE;  AMENDING  SECTION 26-3105, IDAHO CODE, TO AUTHORIZE THE DIRECTOR
  4        TO PARTICIPATE IN THE ESTABLISHMENT AND  IMPLEMENTATION  OF  A  MULTISTATE
  5        AUTOMATED LICENSING SYSTEM FOR MORTGAGE BROKERS AND LENDERS AND INDIVIDUAL
  6        MORTGAGE  LOAN  ORIGINATORS, TO REQUIRE CRIMINAL HISTORY RECORD CHECKS AND
  7        TO EXEMPT CERTAIN INDIVIDUALS AND PERSONS FROM INFORMATION AND  PARTICIPA-
  8        TION REQUIREMENTS.
                                                                        
  9    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 10        SECTION  1.  That  Section 26-3105, Idaho Code, be, and the same is hereby
 11    amended to read as follows:
                                                                        
 12        26-3105.  POWERS AND DUTIES OF DIRECTOR. (1)  In  addition  to  any  other
 13    duties imposed upon the director by law, the director shall:
 14        (1a)  Administer and enforce the provisions and requirements of this chap-
 15        ter;
 16        (2b)  Conduct investigations and issue subpoenas as necessary to determine
 17        whether  a person has violated any provision of this chapter or rules pro-
 18        mulgated under the authority of this chapter;
 19        (3c)  Conduct examinations of the books and records of licensees and  con-
 20        duct  investigations  as  necessary  and proper for the enforcement of the
 21        provisions of this chapter and the rules promulgated under  the  authority
 22        of this chapter;
 23        (4d)  Appoint  a  volunteer  advisory board which shall consist of two (2)
 24        individuals who are mortgage lenders and two (2) individuals who are mort-
 25        gage brokers;
 26        (5e)  Pursuant to chapter 52, title 67, Idaho Code, issue orders and  pro-
 27        mulgate  rules that, in the opinion of the director, are necessary to exe-
 28        cute, enforce and effectuate the purposes of this chapter;
 29        (6f)  Be authorized to set, by annual written notification  to  licensees,
 30        limits  on the fees and charges which are set forth in subsections (1) and
 31        (2) of section 26-3113, Idaho Code;
 32        (7g)  Require that all funds collected by the department under this  chap-
 33        ter  be deposited into the finance administrative account pursuant to sec-
 34        tion 67-2702, Idaho Code; and
 35        (8h)  Review and approve forms used by licensees prior  to  their  use  as
 36        prescribed by the director.
 37        (2)  The  legislature has determined that a uniform multistate administra-
 38    tion of an automated licensing system for mortgage brokers,  mortgage  lenders
 39    and  individual  mortgage  loan originators is consistent with both the public
 40    interest and the purposes of this chapter; therefore, for the sole purpose  of
 41    participating  in  the  establishment and implementation of a multistate auto-
 42    mated licensing system for mortgage brokers, mortgage lenders  and  individual
 43    mortgage loan originators, the director is authorized:
                                                                        
                                           2
                                                                        
  1        (a)  To  modify  by  rule  the  license renewal dates set forth in section
  2        26-3111(3) and (4), Idaho Code;
  3        (b)  To establish by rule such new requirements as are necessary  for  the
  4        state  of  Idaho to participate in a multistate automated licensing system
  5        upon the director's finding that each new requirement is  consistent  with
  6        both the public interest and the purposes of this chapter; and
  7        (c)  To  require  a background investigation of each applicant for a mort-
  8        gage broker, mortgage lender or loan originator license by means  of  fin-
  9        gerprint  checks  by  the  Idaho  state  police  and the FBI for state and
 10        national criminal history record checks, commencing at such time as  Idaho
 11        joins  a multistate automated licensing system for mortgage brokers, mort-
 12        gage lenders and individual mortgage loan  originators  pursuant  to  this
 13        subsection (2). The information obtained thereby may be used by the direc-
 14        tor  to  determine  the  applicant's  eligibility for licensing under this
 15        chapter. The fee required to perform the  criminal  history  record  check
 16        shall  be  borne by the license applicant. Information obtained or held by
 17        the director pursuant to this subsection (2) shall be considered confiden-
 18        tial personal information and shall be exempt from disclosure pursuant  to
 19        section 9-340C(8) and (9), Idaho Code.
 20        (3)  Nothing  in subsection (2) of this section shall authorize the direc-
 21    tor to require any individual or person exempt under  section  26-3103,  Idaho
 22    Code,  or employees or agents of any such exempt individual or person, to sub-
 23    mit information to, or to participate in,  the  uniform  multistate  licensing
 24    system.
                                                                        
                                           3
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                               HOUSE BILL NO. 714, As Amended
                                                                        
                                 BY STATE AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING  TO  THE  POWERS  AND  DUTIES  OF  THE  DIRECTOR OF THE DEPARTMENT OF
  3        FINANCE; AMENDING SECTION 26-3105, IDAHO CODE, TO AUTHORIZE  THE  DIRECTOR
  4        TO  PARTICIPATE  IN  THE  ESTABLISHMENT AND IMPLEMENTATION OF A MULTISTATE
  5        AUTOMATED LICENSING SYSTEM FOR MORTGAGE BROKERS AND LENDERS AND INDIVIDUAL
  6        MORTGAGE LOAN ORIGINATORS, TO REQUIRE CRIMINAL HISTORY RECORD  CHECKS  AND
  7        TO  EXEMPT CERTAIN INDIVIDUALS AND PERSONS FROM INFORMATION AND PARTICIPA-
  8        TION REQUIREMENTS.
                                                                        
  9    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 10        SECTION 2.  That Section 26-3105, Idaho Code, be, and the same  is  hereby
 11    amended to read as follows:
                                                                        
 12        26-3105.  POWERS  AND  DUTIES  OF  DIRECTOR.  (1) In addition to any other
 13    duties imposed upon the director by law, the director shall:
 14        (1a)  Administer and enforce the provisions and requirements of this chap-
 15        ter;
 16        (2b)  Conduct investigations and issue subpoenas as necessary to determine
 17        whether a person has violated any provision of this chapter or rules  pro-
 18        mulgated under the authority of this chapter;
 19        (3c)  Conduct  examinations of the books and records of licensees and con-
 20        duct investigations as necessary and proper for  the  enforcement  of  the
 21        provisions  of  this chapter and the rules promulgated under the authority
 22        of this chapter;
 23        (4d)  Appoint a volunteer advisory board which shall consist  of  two  (2)
 24        individuals who are mortgage lenders and two (2) individuals who are mort-
 25        gage brokers;
 26        (5e)  Pursuant  to chapter 52, title 67, Idaho Code, issue orders and pro-
 27        mulgate rules that, in the opinion of the director, are necessary to  exe-
 28        cute, enforce and effectuate the purposes of this chapter;
 29        (6f)  Be  authorized  to set, by annual written notification to licensees,
 30        limits on the fees and charges which are set forth in subsections (1)  and
 31        (2) of section 26-3113, Idaho Code;
 32        (7g)  Require  that all funds collected by the department under this chap-
 33        ter be deposited into the finance administrative account pursuant to  sec-
 34        tion 67-2702, Idaho Code; and
 35        (8h)  Review  and  approve  forms  used by licensees prior to their use as
 36        prescribed by the director.
 37        (2)  The legislature has determined that a uniform multistate  administra-
 38    tion  of  an automated licensing system for mortgage brokers, mortgage lenders
 39    and individual mortgage loan originators is consistent with  both  the  public
 40    interest  and the purposes of this chapter; therefore, in order to participate
 41    in the establishment and implementation of a  multistate  automated  licensing
 42    system  for  mortgage  brokers,  mortgage lenders and individual mortgage loan
 43    originators, the director is authorized:
 44        (a)  To waive or modify, in whole or in part, by rule or order, any or all
 45        of the requirements of sections 26-3108, 26-3108A,  26-3110  and  26-3111,
 46        Idaho Code;
                                                                        
                                           4
                                                                        
  1        (b)  To  establish such new requirements as are necessary for the state of
  2        Idaho to participate in a multistate automated licensing system  upon  the
  3        director's  finding  that each new requirement is consistent with both the
  4        public interest and the purposes of this chapter; and
  5        (c)  To require a background investigation of each applicant for  a  mort-
  6        gage  broker,  mortgage lender or loan originator license by means of fin-
  7        gerprint checks by the Idaho state  police  and  the  FBI  for  state  and
  8        national  criminal history record checks, commencing at such time as Idaho
  9        joins a multistate automated licensing system for mortgage brokers,  mort-
 10        gage  lenders  and  individual  mortgage loan originators pursuant to this
 11        subsection (2). The information obtained thereby may be used by the direc-
 12        tor to determine the applicant's  eligibility  for  licensing  under  this
 13        chapter.  The  fee  required  to perform the criminal history record check
 14        shall be borne by the license applicant. Information obtained or  held  by
 15        the director pursuant to this subsection (2) shall be considered confiden-
 16        tial  personal information and shall be exempt from disclosure pursuant to
 17        section 9-340C(8) and (9), Idaho Code.
 18        (d)  Nothing in this section shall authorize the director to  require  any
 19        individual  or person exempt under section 26-3103, Idaho Code, or employ-
 20        ees or agents of any such exempt individual or person, to submit  informa-
 21        tion to, or to participate in, the uniform multistate licensing system.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                             RS 16100

The purpose of this bill is to amend the Idaho Residential Mortgage
Practices Act to permit Idaho licensed mortgage brokers, mortgage
lenders, and mortgage loan originators to readily convert to a
uniform nationwide mortgage licensing system when that system is
approved and adopted for implementation pursuant to a national
uniform mortgage licensing project spearheaded by industry
representatives, the Conference of State Bank Supervisors (CSBS),
and the American Association of Residential Mortgage Regulators
(AARMR).


                           FISCAL NOTE

No fiscal impact to the general fund.  It is anticipated that a
nationwide mortgage licensing system may lead to an increase in the
number of Idaho licensees.  This would lead to increased licensing
revenues to the Department's dedicated account.




Contact
Name:     Mike Larsen, Department of Finance 
Phone:    332-8060


STATEMENT OF PURPOSE/FISCAL NOTE                         H 714