Print Friendly SENATE BILL NO. 1374 – Mortgage lenders, license
SENATE BILL NO. 1374
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S1374.......................................by COMMERCE AND HUMAN RESOURCES
MORTGAGE LENDERS - Amends existing law to provide that a license to make
regulated consumer loans may be issued to mortgage lenders licensed under
the Residential Mortgage Practices Act without payment of license fees,
investigation of financial responsibility or notice to existing licensees
and to provide for the application of all other provisions of the Idaho
Credit Code to such mortgage lenders.
01/30 Senate intro - 1st rdg - to printing
02/02 Rpt prt - to Com/HuRes
02/13 Rpt out - rec d/p - to 2nd rdg
02/16 2nd rdg - to 3rd rdg
02/19 3rd rdg - PASSED - 32-0-3
AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
Crow, Danielson, Darrington, Deide, Dunklin, Frasure, Hansen, Ingram,
Ipsen, Keough, King, Lee, McLaughlin, Noh, Parry, Richardson, Riggs,
Risch, Sandy, Schroeder, Sorensen, Stennett, Sweeney, Thorne,
Absent and excused--Geddes, Hawkins, Twiggs
Floor Sponsor - Burtenshaw
Title apvd - to House
02/20 House intro - 1st rdg - to Bus
03/10 Rpt out - rec d/p - to 2nd rdg
03/11 2nd rdg - to 3rd rdg
03/12 3rd rdg - PASSED - 65-0-5
AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Bivens,
Black(15), Black(23), Boe, Bruneel, Callister, Campbell, Chase,
Clark, Crane, Cuddy, Deal, Denney, Ellsworth, Field(13), Field(20),
Gagner, Geddes, Gould, Hadley, Hansen, Henbest, Hornbeck, Jaquet,
Jones(22), Judd, Kellogg, Kendell, Kjellander, Kunz, Lake, Linford,
Loertscher, Mader, Marley, McKague, Meyer, Miller, Mortensen,
Newcomb, Pischner, Pomeroy, Reynolds, Richman, Ridinger, Robison,
Sali, Schaefer, Stevenson, Stoicheff, Stone, Taylor, Tilman, Tippets,
Trail, Watson, Wheeler, Wood, Zimmermann, Mr Speaker
NAYS -- None
Absent and excused -- Crow, Jones(9), Jones(20), Kempton, Stubbs
Floor Sponsor - Black(15)
Title apvd - to Senate
03/13 To enrol
03/16 Rpt enrol - Pres signed
03/16 Sp signed
03/17 To Governor
03/18 Governor signed
Session Law Chapter 74
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fourth Legislature Second Regular Session - 1998
IN THE SENATE
SENATE BILL NO. 1374
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO THE IDAHO CREDIT CODE; AMENDING SECTION 28-46-302, IDAHO CODE, TO
3 PROVIDE THAT A LICENSE TO MAKE REGULATED CONSUMER LOANS MAY BE ISSUED TO
4 MORTGAGE LENDERS LICENSED UNDER THE RESIDENTIAL MORTGAGE PRACTICES ACT
5 WITHOUT PAYMENT OF LICENSE FEES, INVESTIGATION OF FINANCIAL RESPONSIBILITY
6 OR NOTICE TO EXISTING LICENSEES AND TO PROVIDE FOR THE APPLICATION OF ALL
7 OTHER PROVISIONS OF THE IDAHO CREDIT CODE TO SUCH MORTGAGE LENDERS.
8 Be It Enacted by the Legislature of the State of Idaho:
9 SECTION 1. That Section 28-46-302, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 28-46-302. LICENSE TO MAKE REGULATED CONSUMER LOANS. (1) Upon receipt by
12 the administrator of an application with the required fee to be fixed by the
13 administrator, but not to exceed one hundred dollars ($100), the applicant
14 shall notify all existing licensees in the community of the application by
15 publishing notice once a week for three (3) consecutive weeks in a newspaper
16 of general circulation in the community. Such licensees may file with the
17 administrator any objections to the issuance of a license within thirty (30)
18 days after the date of the last publication of such notice.
19 (2) No application for license shall be denied if the administrator finds
21 (a) The financial responsibility, character, and fitness of the appli-
22 cant, and of the officers and directors thereof (if the applicant is a
23 corporation) are such as to warrant belief that the business will be oper-
24 ated honestly and fairly within the purposes of this act; and
25 (b) The applicant has at least thirty thousand dollars ($30,000) avail-
26 able for the purpose of making loans.
27 (3) The administrator is empowered to conduct investigations as he may
28 deem necessary, to enable him to determine the existence of the requirements
29 set out in subsections (2)(a) and (2)(b) of this section.
30 (4) The director may issue a license under this act to a mortgage
31 lender licensed under chapter 31, title 26, Idaho Code, and who is engaged in
32 the business described in subsection (1) or (2) of section 28-46-301, Idaho
33 Code. All provisions of this act, except subsections (1), (2) and (3) of this
34 section, and subsection (5) of section 28-46-305, Idaho Code, shall apply to
35 persons seeking a license pursuant to this subsection.
36 (5) Upon written request, the applicant is entitled to a hearing
37 on the question of his qualifications for a license if:
38 (a) The administrator has notified the applicant in writing that his
39 application has been denied, or objections filed; or
40 (b) The administrator has not issued a license within sixty (60) days
41 after the application for the license was filed.
42 If a hearing is held, the applicant and those filing objections shall
43 reimburse, pro rata, the administrator for his reasonable and necessary
1 expenses incurred as a result of the hearing. A request for a hearing may not
2 be made more than fifteen (15) days after the administrator has mailed a writ-
3 ing to the applicant notifying him that the application has been denied and
4 stating in substance the administrator's finding supporting denial of the
5 application or that objections have been filed and the substance thereof.
6 ( 5 6 ) The administrator may issue additional
7 licenses to the same licensee upon compliance with all the provisions of this
8 act governing the issuance of a single license. A separate license shall be
9 required for each place of business. Each license shall remain in full force
10 and effect until surrendered, suspended or revoked.
11 ( 6 7 ) No licensee shall change the location of
12 any place of business, or consolidate, or close any locations, without giving
13 the administrator at least fifteen (15) days' prior written notice. No licen-
14 see shall change the location of any of his places of business to a location
15 more than five (5) miles from the original location or outside the original
16 municipality, if any.
17 ( 7 8 ) A licensee shall not engage in the busi-
18 ness of making regulated consumer loans at any place of business for which he
19 does not hold a license nor shall he engage in business under any other name
20 than that in the license.
STATEMENT OF PURPOSE
This legislation eliminates the requirement that a mortgage
lender that makes second or other subordinated mortgage loans
apply for a license under the Idaho Credit Code if it has
obtained a license under the Residential Mortgage Practices Act.
Mortgage lenders will continue to be subject to the substantive
provisions of both laws, but will only apply for the Residential
mortgage Practices Act license and pay only the fee associated
with that license.
This bill will reduce the number of companies applying for two
licenses from the Department, but it is not a large number of
companies and we believe the fiscal al impact will be minor.
Name: Marilyn Scanlan
Agency: Department of Finance
Statement of Purpose/Fiscal Impact