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H0248......................................................by STATE AFFAIRS
RESIDENTIAL MORTGAGE LAW - Amends existing law to remove language exempting
persons licensed under the Idaho real estate license law from provisions
relating to residential mortgage practices. HCR021
02/11 House intro - 1st rdg - to printing
02/12 Rpt prt - to Bus
02/26 Rpt out - rec d/p - to 2nd rdg
02/27 2nd rdg - to 3rd rdg
02/28 3rd rdg - PASSED - 57-6-7
AYES -- Andersen, Bauer, Bedke, Bell, Bieter, Black, Block, Boe,
Bolz, Bradford, Campbell, Cannon, Clark, Collins, Crow, Cuddy, Deal,
Denney, Douglas, Eberle, Edmunson, Ellsworth, Eskridge, Field(23),
Garrett, Harwood, Henbest, Jaquet, Jones, Lake, Langford, Langhorst,
Martinez, McGeachin, Meyer, Miller, Mitchell, Moyle, Naccarato,
Raybould, Ridinger, Ring, Ringo, Roberts, Robison, Rydalch, Sayler,
Shepherd, Shirley, Skippen, Smith(30), Smith(24), Smylie, Snodgrass,
Stevenson, Tilman, Wills
NAYS -- Barrett, Kulczyk, McKague, Nielsen, Sali, Wood
Absent and excused -- Barraclough, Field(18), Gagner, Kellogg,
Schaefer, Trail, Mr. Speaker
Floor Sponsor - Meyer
Title apvd - to Senate
03/03 Senate intro - 1st rdg - to Com/HuRes
03/21 Rpt out - rec d/p - to 2nd rdg
03/24 2nd rdg - to 3rd rdg
03/25 3rd rdg - PASSED - 35-0-0
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, Noble, Noh, Pearce, Richardson,
Schroeder, Sorensen, Stegner, Stennett, Sweet, Werk, Williams
NAYS -- None
Absent and excused -- None
Floor Sponsor - Goedde
Title apvd - to House
03/26 To enrol
03/27 Rpt enrol - Sp signed
03/28 Pres signed
03/31 To Governor
04/04 Governor signed
Session Law Chapter 221
Effective: 07/01/03
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 248
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO THE RESIDENTIAL MORTGAGE PRACTICES ACT; AMENDING SECTION 26-3103,
3 IDAHO CODE, TO REMOVE LANGUAGE EXEMPTING PERSONS LICENSED UNDER THE IDAHO
4 REAL ESTATE LICENSE LAW FROM PROVISIONS RELATING TO RESIDENTIAL MORTGAGE
5 PRACTICES.
6 Be It Enacted by the Legislature of the State of Idaho:
7 SECTION 1. That Section 26-3103, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 26-3103. EXEMPTIONS. The provisions of this chapter do not apply to:
10 (1) Agencies of the United States and agencies of this state and its
11 political subdivisions;
12 (2) An owner of real property who offers credit secured by a contract of
13 sale, mortgage or deed of trust on the property sold;
14 (3) A loan that is made by a person to an employee of that person if the
15 proceeds of the loan are used to assist the employee in meeting his housing
16 needs;
17 (4) Any person licensed or chartered under the laws of this state or the
18 United States as a bank, regulated lender licensed under the Idaho credit code
19 and regularly engaged in making regulated consumer loans other than those
20 secured by a security interest in real property, savings and loan association,
21 credit union, or trust company;
22 (5) Any person licensed or chartered under the laws of any other state as
23 a bank, savings and loan association, or credit union;
24 (6) Attorneys, or persons licensed under either chapter 2, or chapter 20,
25 title 54, Idaho Code, provided that the license held by such attorneys or per-
26 sons is in an active status;
27 (7) Persons employed by licensees on a full-time basis or persons who are
28 employed by no more than one (1) licensee on a part-time basis;
29 (8) Any person or entity not making more than five (5) loans primarily
30 for personal, family, or household use and primarily secured by a security
31 interest on residential real property, with his own funds for his own invest-
32 ment, in any period of twelve (12) consecutive months; nor
33 (9) Any person who funds a residential mortgage loan which has been orig-
34 inated and processed by a licensee or by an exempt person, who does not
35 directly or indirectly solicit borrowers in this state for the purpose of mak-
36 ing residential mortgage loans, and who does not participate in the negotia-
37 tion of residential mortgage loans with the borrower. For the purpose of this
38 subsection, "negotiation of residential mortgage loans" does not include set-
39 ting the terms under which a person may buy or fund a residential mortgage
40 loan originated by a licensee or exempt person.
STATEMENT OF PURPOSE
RS 12924
The purpose of this legislation is to remove the exemption for
real estate licensees under the Residential Mortgages Practices
Act. This act regulates the mortgage industry and provides for
accountability, training and licensing on the part of mortgage
brokers. It also allows for consequences when a broker is not
using best practices. The law currently allows for exemption of
attorneys, CPA's and real estate licensees. Both the attorneys
and CPA's are regulated in their practices, including any work
they do in loan brokering, by their professional organizations.
If either engages in bad practices, their professional licensing
authority can become involved and impose sanctions. The Idaho
Real Estate Commission would not become involved in the
investigation or resolution of any complaints against the
mortgage practices of a real estate licensee unless the complaint
involved outright fraud. The Department of Finance, who
regulates the Act, has stated they also have no authority to
become involved in the investigation or resolution of such
complaints at all. Since real estate licensees are exempt from
licensing, the Department of Finance has no standing to become
involved, even to verify the complaint.
FISCAL IMPACT
There is no significant impact on the General Fund. There is the
possibility of a slight increase in licensing fees to the
Department of Finance for those real estate licensees wishing to
be licensed as mortgage brokers.
Contact
Name: Teri Ottens, Idaho Association of Mortgage Brokers
Phone: (208)321-0309
STATEMENT OF PURPOSE/FISCAL NOTE H 248