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H0028...........................................................by MR. SPEAKER
Requested by: Department of Finance
RESIDENTIAL MORTGAGE PRACTICES - Amends existing law relating to the
Residential Mortgage Practices Act to revise definitions; to provide remedies
for violations of federal law and regulations; to revise licensure provisions
and license revocation and suspension provisions; to delete requirements for
trust accounts; to require the filing of renewal forms; to revise prohibited
practices; and to provide for the relationship of the Residential Mortgage
Practices Act to the laws of other political subdivisions.
01/06 House intro - 1st rdg - to printing
Rpt prt - to Bus
02/06 Rpt out - rec d/p - to 2nd rdg
02/07 2nd rdg - to 3rd rdg
02/11 3rd rdg - PASSED - 67-0-3
AYES -- Andersen, Barraclough, Barrett, Bauer, Bedke, Bell, Bieter,
Black, Block, Boe, Bolz, Campbell, Cannon, Clark, Collins, Crow, Cuddy,
Deal, Denney, Douglas, Eberle, Edmunson, Ellsworth, Field(18),
Field(23), Gagner, Garrett, Harwood, Henbest, Jaquet, Jones, Kellogg,
Kulczyk, Lake, Langford, Langhorst, Martinez, McGeachin, McKague, Meyer,
Miller, Mitchell, Moyle, Naccarato, Nielsen, Raybould, Ridinger, Ring,
Ringo, Roberts, Robison, Rydalch, Sali, Sayler, Schaefer(Schaefer),
Shepherd, Shirley, Skippen, Smith(30), Smith(24), Smylie, Snodgrass,
Stevenson, Trail, Wills, Wood, Mr. Speaker
NAYS -- None
Absent and excused -- Bradford, Eskridge, Tilman
Floor Sponsor - Gagner
Title apvd - to Senate
02/12 Senate intro - 1st rdg - to Com/HuRes
02/28 Rpt out - rec d/p - to 2nd rdg
03/03 2nd rdg - to 3rd rdg
03/10 3rd rdg - PASSED - 33-0-2
AYES -- Andreason, Bailey, Brandt, Bunderson, Burtenshaw, Calabretta,
Cameron, Compton, Darrington, 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 -- Burkett, Davis
Floor Sponsor - Goedde
Title apvd - to House
03/11 To enrol
03/12 Rpt enrol - Sp signed
03/13 Pres signed
03/14 To Governor
03/17 Governor signed
Session Law Chapter 73
Effective: 07/01/03
|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-seventh Legislature First Regular Session - 2003IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 28 BY MR. SPEAKER Requested by: Department of Finance 1 AN ACT 2 RELATING TO RESIDENTIAL MORTGAGE PRACTICES; AMENDING SECTION 26-3102, IDAHO 3 CODE, TO REVISE APPLICATION OF TERMINOLOGY, TO REVISE DEFINITIONS AND TO 4 DEFINE TERMS; AMENDING SECTION 26-3106, IDAHO CODE, TO PROVIDE REMEDIES 5 FOR VIOLATIONS OF FEDERAL LAW AND REGULATIONS AND TO PROVIDE CLARIFYING 6 LANGUAGE; AMENDING SECTION 26-3108, IDAHO CODE, TO REVISE GROUNDS FOR 7 DENIAL OF LICENSES, TO REQUIRE THE LICENSURE OF HOME OFFICES, TO REVISE 8 PROVISIONS RELATING TO THE LICENSURE OF HOME AND BRANCH OFFICES, TO 9 REQUIRE DISCLOSURE OF CERTAIN INFORMATION AND TO PROVIDE CIVIL IMMUNITY 10 FOR APPLICANTS OR THEIR AGENTS IN CERTAIN CIRCUMSTANCES; AMENDING SECTION 11 26-3109, IDAHO CODE, TO REVISE LICENSE REVOCATION AND SUSPENSION PROVI- 12 SIONS; AMENDING SECTION 26-3110, IDAHO CODE, TO DELETE A REFERENCE TO 13 TRUST ACCOUNTS, TO INCREASE THE SURETY BOND AMOUNT REQUIRED FOR BRANCH 14 OFFICES, AND TO DELETE LANGUAGE REQUIRING LICENSEES TO DEPOSIT FEES IN 15 TRUST ACCOUNTS AND TO SUBMIT FORMS RELATING TO TRUST ACCOUNTS AND AUTHO- 16 RIZING ACCESS TO SUCH TRUST ACCOUNTS; AMENDING SECTION 26-3111, IDAHO 17 CODE, TO REQUIRE LICENSEES TO FILE A RENEWAL FORM WITH THE DIRECTOR; 18 AMENDING SECTION 26-3114, IDAHO CODE, TO PROHIBIT PERSONS REQUIRED TO HAVE 19 A LICENSE FROM ENGAGING IN CERTAIN ACTIVITIES AND TO PROHIBIT CERTAIN 20 AGREEMENTS UNLESS WRITTEN CONFIRMATION IS DELIVERED TO THE BORROWER; 21 AMENDING SECTION 26-3116, IDAHO CODE, TO PROVIDE CORRECT CODE REFERENCES; 22 AND AMENDING CHAPTER 31, TITLE 26, IDAHO CODE, BY THE ADDITION OF A NEW 23 SECTION 26-3117, IDAHO CODE, TO PROHIBIT STATE POLITICAL SUBDIVISIONS FROM 24 REGULATING THE FINANCIAL OR LENDING ACTIVITIES OF CERTAIN PERSONS AND TO 25 PROVIDE FOR APPLICATION OF THE PROHIBITION. 26 Be It Enacted by the Legislature of the State of Idaho: 27 SECTION 1. That Section 26-3102, Idaho Code, be, and the same is hereby 28 amended to read as follows: 29 26-3102. DEFINITIONS. As used in this chapter and in rules promulgated 30 pursuant to this chapter: 31 (1) "Act" means this Idaho residential mortgage practices act. 32 (2) "Agent" means a person who acts with the consent and on behalf of a 33 licensee, and is subject to the licensee's direct or indirect control, and may 34 include an independent contractor. 35 (3) "Borrower" means the person who has applied to a lender for a resi- 36 dential mortgage loan or on whose behalf the activities set forth in subsec- 37 tions (127) and (138) of this section are conducted. 38 (34) "Department" means the department of finance of the state of Idaho. 39 (45) "Director" means the director of the department of finance. 40 (56) "Licensee" means a person licensed pursuant to this chapter to 41 engage in the activities regulated by this act. 42 (67) "Mortgage banker" means any person, other than an exempt person, who 43 makes residential mortgage loans to borrowers, and performs the activities 2 1 described in subsection (127) of this section. 2 (78) "Mortgage broker" means any person, other than an exempt person, who 3 performs the activities described in subsection (138) of this section with 4 respect to a residential mortgage loan. For the purposes of this chapter, the 5 term "mortgage broker" does not include persons who are mortgage bankers. 6 (89) "Mortgage brokerage agreement" means a written agreement in which a 7 mortgage broker agrees to obtain a residential mortgage loan for the borrower 8 or assist the borrower in obtaining a residential mortgage loan. 9 (910) "Person" means an individual, sole proprietorship, partnership, cor- 10 poration, or other association of individuals, however organized. 11 (11) "Real estate settlement procedures act" means the act set forth in 12 12 U.S.C. section 2601 et seq., as amended to and including January 1, 2003, or a 13 subsequent date if so defined by administrative rule. 14 (12) "Regulation X" means regulation X as promulgated by the U.S. depart- 15 ment of housing and urban development and codified in 24 CFR part 3500 et 16 seq., as amended to and including January 1, 2003, or a subsequent date if so 17 defined by administrative rule. 18 (13) "Regulation Z" means regulation Z as promulgated by the board of gov- 19 ernors of the federal reserve system and codified in 12 CFR part 226 et seq., 20 as amended to and including January 1, 2003, or a subsequent date if so 21 defined by administrative rule. 22 (104) "Residential mortgage loan" means a loan made primarily for per- 23 sonal, family, or household use and primarily secured by a security interest 24 on residential real property located in this state. 25 (115) "Residential real property" means real property located in this 26 state improved by a one (1) to four (4) family dwelling.used as the primary27home or residence of one (1) or more persons or located in a platted subdivi-28sion.29 (16) "Truth in lending act" means the act set forth in 15 U.S.C. section 30 1601 et seq., as amended to and including January 1, 2003, or a subsequent 31 date if so defined by administrative rule. 32 (127) "Mortgage banking activities" means for compensation or gain, either 33 directly or indirectly, accepting or offering to accept applications for resi- 34 dential mortgage loans, assisting or offering to assist in the preparation of 35 an application for a residential mortgage loan. 36 (138) "Mortgage brokering activities" means for compensation or gain, 37 either directly or indirectly, accepting or offering to accept an application 38 for a residential mortgage loan, assisting or offering to assist in the prepa- 39 ration of an application for a residential mortgage loan on behalf of a bor- 40 rower, or negotiating or offering to negotiate the terms or conditions of a 41 residential mortgage loan with any person making residential mortgage loans. 42 SECTION 2. That Section 26-3106, Idaho Code, be, and the same is hereby 43 amended to read as follows: 44 26-3106. REMEDIES AVAILABLE TO THE DEPARTMENT. (1) Whenever it appears to 45 the director that any person has engaged in or is about to engage in any act 46 or practice constituting a violation of any provision of the truth in lending 47 act, the real estate settlement procedures act, regulation X, regulation Z, or 48 of this chapter or any rule or orderthereunder this chapter, he may in his 49 discretion bring an action in any court of competent jurisdiction, and upon a 50 showing of any violation there shall be granted any or all of the following: 51 (a) A writ or order restraining or enjoining temporarily or permanently, 52 any act or practice violating any provision of this chapter or any rule 53 promulgated pursuant thereto, and to enforce compliance under this chapter 3 1 or any rule or order hereunder; 2 (b) An order that the person violating any provision of this chapter, or 3 a rule or order hereunder pay a civil penalty to the department in an 4 amount not to exceed five thousand dollars ($5,000) for each violation; 5 (c) An order allowing the director to recover costs which may include 6 investigative expenses and attorney's fees; 7 (d) An order granting a declaratory judgment that a particular act, prac- 8 tice or method is a violation of the provisions of this chapter; 9 (e) An order granting other appropriate remedies including restitution to 10 borrowers for excess charges or actual damages. 11 (2) If the director finds that a person has violated or is violating, or 12 that there is reasonable cause to believe that a person is about to violate 13 the provisions of this chapter, the director may, in his discretion, order the 14 person to cease and desist from the violations. 15 SECTION 3. That Section 26-3108, Idaho Code, be, and the same is hereby 16 amended to read as follows: 17 26-3108. LICENSE TO DO BUSINESS AS A MORTGAGE BANKER OR MORTGAGE BROKER. 18 (1) The director shall receive and act on all applications for licenses to do 19 business as a mortgage banker or mortgage broker. Applications shall be filed 20 in the manner prescribed by the director, shall contain such information as 21 the director may reasonably require, shall be updated as necessary to keep the 22 information current, and shall be accompanied by an application fee of two 23 hundred dollars ($200). When an application for licensure is denied or with- 24 drawn, the director shall retain all fees paid by the applicant. 25 (2) An application for licenseshallmay be deniedunlessif the director 26 finds that: 27 (a) The financial responsibility, character, and fitness of the license 28 applicant, and of the officers and directors thereof, if the applicant is 29 a corporation, partners thereof if the applicant is a partnership, members 30 or managers thereof if the applicant is a limited liability company, and 31 individuals designated in charge of the applicant's places of business, 32 are not such as to warrant belief that the business will be operated hon- 33 estly and fairly within the purposes of this chapter; 34 (b) The individualsdesignated in charge of applicant's places of busi- 35 ness does not have a minimum of three (3) years' experience in residential 36 mortgage lending; 37 (c) The applicanthasdoes not have a net worth of at least ten thousand 38 dollars ($10,000); 39 (d) The applicant hasnotbeen convicted of any felony or a misdemeanor 40 involvingmoral turpitudeany aspect of the financial services business, 41nor hasor a court has accepted a finding of guilt on the part of the 42 applicant,of any felony or a misdemeanor involvingmoral turpitudeany 43 aspect of the financial services business;and44 (e) The applicant hasnothad a license, substantially equivalent to a 45 license under this chapter and issued byanotherany state, denied, 46 revoked or suspended under the law of such state; 47 (f) The applicant has filed an application for a license which is false 48 or misleading with respect to any material fact; 49 (g) The applicant or any partner, officer, director, manager, employee or 50 agent of the applicant has violated this chapter or any rule or order law- 51 fully made pursuant to this chapter; 52 (h) The applicant or any partner, officer, director, manager, employee or 53 agent of the applicant has violated any other law of this state, or fed- 4 1 eral laws or regulations pertaining to the mortgage banking or mortgage 2 brokering activities set forth in section 26-3102, Idaho Code; or 3 (i) The applicant has not provided information on the application as rea- 4 sonably required by the director pursuant to subsection (1) of this sec- 5 tion. 6 (3) The director is empowered to conduct investigations as he may deem 7 necessary, to enable him to determine the existence of the requirements set 8 out in subsection (2) of this section. 9 (4) Upon written request, an applicant is entitled to a hearing on the 10 question of his qualifications for a license if: 11 (a) The director has notified the applicant in writing that his applica- 12 tion has been denied, or objections filed; 13 (b) The director has not issued a license within sixty (60) days after 14 the application for the license was filed. If a hearing is held, the 15 applicant and those filing objections shall reimburse, pro rata, the 16 director for his reasonable and necessary expenses incurred as a result of 17 the hearing. A request for hearing may not be made more than fifteen (15) 18 days after the director has mailed a writing to the applicant notifying 19 him that the application has been denied and stating in substance the 20 director's finding supporting denial of the application or that objections 21 have been filed and the substance thereof. 22 (5) Every licensee shall have licensed and shall maintain a home office 23 as a principal location for the transaction of mortgage business. The director 24 may, on application, issue additional branch licenses to the same licensee 25 upon compliance with all the provisions of this chapter governing the issuance 26 of a single license. A separate license shall be required for each place of 27 business from which mortgage brokering activities or mortgage banking activi- 28 ties are directly or indirectly conducted. The individual in charge of each 29 place of business must satisfy the requirements of subsections (2)(b), (d) and 30 (e) of this section. Each license shall remain in full force and effect unless 31annualthe licensee does not satisfy the renewalfees are not paidrequire- 32 ments of section 26-3111(2), Idaho Code, or the license is relinquished, sus- 33 pended, or revoked; provided however, branch licenses shall be terminated upon 34 the relinquishment or revocation of a home office license. 35 (6) No licensee shall change the location of any place of business, con- 36 solidate two (2) or more locations, or close any location, without giving the 37 director at least fifteen (15) days' prior written notice. 38 (7) A licensee shall not engage in the business of making or brokering 39 residential mortgage loans at any place of business for which he does not hold 40 a license nor shall he engage in business under any other name than that on 41 the license. 42 (8) The director may suspend action upon a license application pending 43 resolution of any criminal charges before any court of competent jurisdiction 44 against an applicant which would disqualify that applicant if convicted. 45 (9) An applicant shall make complete disclosure of all information 46 required in the application, including information concerning officers, direc- 47 tors, partners, members, managers, employees or agents. An applicant, or an 48 individual acting on behalf of the applicant, is not liable in any civil 49 action other than a civil action brought by a governmental agency, related to 50 an alleged untrue statement made pursuant to this section unless it is shown 51 by clear and convincing evidence that: 52 (a) The applicant, or an individual acting on behalf of the applicant, 53 knew at the time that the statement was made that it was false in any 54 material respect; or 55 (b) The applicant, or an individual acting on behalf of the applicant, 5 1 acted in reckless disregard as to the statement's truth or falsity. 2 SECTION 4. That Section 26-3109, Idaho Code, be, and the same is hereby 3 amended to read as follows: 4 26-3109. REVOCATION OR SUSPENSION OF LICENSE. (1) If the department has 5 reason to believe that grounds exist for revocation or suspension of a 6 license, the department may initiate a contested case againstthe license of7thea mortgage banker or mortgage broker, and any partner, officer, director, 8 manager, employee or agent whose activities constitute the basis for revoca- 9 tion or suspension, in accordance with chapter 52, title 67, Idaho Code. The 10 director may, after proceedings pursuant to chapter 52, title 67, Idaho Code, 11 suspend the license for a period not to exceed six (6) months, or revoke the 12 license, if he finds that: 13 (a) The licensee or any partner, officer, director, manager, employee or 14 agent of the licensee has violated this chapter or any rule or order law- 15 fully made pursuant to this chapter; or 16 (b) The licensee or any partner, officer, director, manager, employee or 17 agent of the licensee has violated any other laws of this state, or fed- 18 eral laws or regulations pertaining to the mortgage banking or mortgage 19 brokering activities set forth in section 26-3102, Idaho Code; or 20 (c) Facts or conditions exist which would clearly have justified the 21 director in refusing to grant a license had these facts or conditions been 22 known to exist at the time the license was issued; or 23 (d) The licensee or any partner, officer, director, manager, employee or 24 agent of the licensee has been convicted of any felony or a misdemeanor 25 involvingmoral turpitudeany aspect of the financial services business, 26 or a court has accepted a finding of guilt on the part of the licensee or 27 partner, officer, director, manager, employee or agent of the licensee, of 28 any felony or a misdemeanor involvingmoral turpitudeany aspect of the 29 financial services business; or 30 (e) The licensee or any partner, officer, director, manager, employee or 31 agent of the licensee has had a license substantially equivalent to a 32 license under this chapter, and issued by another state, denied, revoked 33 or suspended under the laws of such state; or 34 (f) The licensee has filed an application for a license which as of the 35 date the license was issued, or as of the date of an order denying, sus- 36 pending or revoking a license, was incomplete in any material respect or 37 contained any statement that was, in light of the circumstances under 38 which it was made, false or misleading with respect to any material fact; 39 or 40 (g) The licensee fails to maintain a net worth of ten thousand dollars 41 ($10,000). 42 (2) If the director finds that probable cause for revocation of a license 43 exists and that enforcement of this chapter and the public interest require 44 immediate suspension of the license pending investigation, he may, after a 45 hearing upon five (5) days' written notice, enter an order suspending the 46 license for not more than thirty (30) days. 47 (3) Any licensee may relinquish the license by notifying the department 48 in writing of its relinquishment, but this relinquishment shall not affect his 49 liability for acts previously committed, and may not occur after the filing 50 of a complaint for revocation of the license. 51 (4) The director may, in his discretion, reinstate a license, terminate a 52 suspension, or grant a new license to a person whose license has been revoked 53 or suspended if no fact or condition then exists which clearly would justify 6 1 the department in refusing to grant a license. 2 SECTION 5. That Section 26-3110, Idaho Code, be, and the same is hereby 3 amended to read as follows: 4 26-3110. SURETY BONDS.AND TRUST ACCOUNTS.(1) All licensees, with or 5 without an office located in this state, shall maintain a surety bond to the 6 state of Idaho in accordance with this section. The bond to be maintained 7 shall be in the amount of ten thousand dollars ($10,000). This amount shall be 8 increased by additional sums offiveten thousand dollars ($510,000) for each 9 licensed branch office, in addition to an initial office, that the licensee10maintains within the state of Idaho. In the event that a licensee has violated11any of the provisions of this chapter, any other governing state law, any gov-12erning federal law, or in the event that a court of competent jurisdiction has13found that a licensee has damaged any person, then the bond shall be forfeited14and paid by the surety to the state of Idaho for the benefit of any person15damaged by the licensee. The bond shall be a continuing obligation of the 16 issuing surety. The surety's liability under the bond for any claims made 17 thereunder either individually or in the aggregate shall in no event exceed 18 the face amount of the bond issued. The bond shall be issued by a surety 19 authorized to do business in the state of Idaho. The bond, including any and 20 all riders and endorsements executed subsequent to the effective date of the 21 bond, shall be placed on file with the department. 22 (2)Each licensee shall deposit all fees allowed by section 26-3113,23Idaho Code, paid to the licensee by borrowers in a trust account established24at a bank, savings and loan association, or credit union located in the state25of Idaho. Funds held in a trust account may only be withdrawn in accordance26with a written agreement with the borrowerIn the event that a licensee or any 27 employee or agent of a licensee has violated any of the provisions of this 28 chapter or of a rule or order lawfully made pursuant to this chapter, or fed- 29 eral law or regulation pertaining to the mortgage banking or mortgage 30 brokering activities set forth in section 26-3102, Idaho Code, and has damaged 31 any person by such violation, then the bond shall be forfeited and paid by the 32 surety to the state of Idaho for the benefit of any person so damaged. 33(3) Each licensee shall file with the director, on a form approved by the34director, a statement identifying the name of the financial institution,35account number, and name of account for the trust account maintained.36(4) Each licensee shall authorize the director or a duly authorized rep-37resentative of the director, on a form approved by the director, to examine38the licensee's trust account at such times as the director may direct.39 SECTION 6. That Section 26-3111, Idaho Code, be, and the same is hereby 40 amended to read as follows: 41 26-3111. RECORDS -- ANNUAL REPORTS -- RENEWAL OF LICENSE. (1) Every 42 licensee shall maintain records in conformity with generally accepted account- 43 ing principles in a manner that will enable the director to determine whether 44 the licensee is complying with the provisions of this chapter. The recordkeep- 45 ing system of a licensee shall be sufficient if he makes the required infor- 46 mation reasonably available. The records need not be kept in the place of 47 business where residential mortgage loans are made, if the director is given 48 free access to the records wherever located. The records pertaining to any 49 loan need not be preserved for more than five (5) years after making the final 50 entry relating to the loan. 51 (2) On or before August 31 of each year, every licensee shall pay an 7 1 annual license renewal fee of one hundred dollars ($100), and file with the 2 director a renewal form containing such information as the director may 3 require and a composite annual report for the residential mortgage loans made 4 or brokered by him. 5 SECTION 7. That Section 26-3114, Idaho Code, be, and the same is hereby 6 amended to read as follows: 7 26-3114. PROHIBITED PRACTICES. No licensee or person required to have a 8 license shall: 9 (1) Obtain any exclusive dealing or exclusive agency agreement from any 10 borrower; 11 (2) Delay closing of any residential mortgage loan for the purpose of 12 increasing interest, costs, fees, or charges payable by the borrower; 13 (3) Accept any fees at closing which were not previously disclosed fully 14 to the borrower; 15 (4) Obtain any agreement or instrument in which blanks are left to be 16 filled in after execution; 17 (5) Engage in any misrepresentation in connection with a residential 18 mortgage loan; 19 (6) Make payment, whether directly or indirectly, of any kind to any in- 20 house or fee appraiser for the purpose of influencing the independent judgment 21 of the appraiser with respect to the value of any real estate which is to be 22 covered by a residential mortgage loan; 23 (7) Make any false promises likely to influence or persuade, or pursue a 24 course of misrepresentations and false promises through agents, solicitors, 25 advertising or otherwise;nor26 (8) Misrepresent, circumvent or conceal, through whatever subterfuge or 27 device, any of the material particulars or the nature thereof, regarding a 28 transaction to which it is a party.; nor 29 (9) Enter into any agreement, with or without the payment of a fee, to 30 fix in advance a particular interest rate or other term in a residential mort- 31 gage loan unless written confirmation of the agreement isin writing and is32signed by the partiesdelivered to the borrower as required by rule pursuant 33 to this chapter. 34 SECTION 8. That Section 26-3116, Idaho Code, be, and the same is hereby 35 amended to read as follows: 36 26-3116. INITIAL LICENSING AND COMPLIANCE. A person who conducts any of 37 the activities set forth in subsections (127) and (138) of section 26-3102, 38 Idaho Code, on the effective date of this act shall, within sixty (60) days 39 following the effective date of this act, apply to the department for a 40 license. 41 SECTION 9. That Chapter 31, Title 26, Idaho Code, be, and the same is 42 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 43 ignated as Section 26-3117, Idaho Code, and to read as follows: 44 26-3117. RELATIONSHIP TO OTHER LAWS. (1) All political subdivisions of 45 this state shall be prohibited from enacting and enforcing ordinances, resolu- 46 tions, regulations and rules pertaining to the financial or lending activities 47 of persons who: 48 (a) Are subject to the jurisdiction of the department, including those 49 whose activities are subject to this chapter; 8 1 (b) Are subject to the jurisdiction or regulatory supervision of the 2 board of governors of the federal reserve system, the office of the comp- 3 troller of the currency, the office of thrift supervision, the national 4 credit union administration, the federal deposit insurance corporation, 5 the federal trade commission or the United States department of housing 6 and urban development; or 7 (c) Originate, purchase, sell, assign, securitize or service property 8 interests or obligations created by financial transactions or loans made, 9 executed or originated by persons referred to in paragraph (a) or (b) of 10 this subsection or who assist or facilitate such transactions. 11 (2) The requirements of this subsection shall apply to all ordinances, 12 resolutions and rules pertaining to financial or lending activities, including 13 any ordinances, resolutions or rules disqualifying persons from doing business 14 with a political subdivision based upon financial or lending activities or 15 imposing reporting requirements or any other obligations upon persons regard- 16 ing financial or lending activities.
STATEMENT OF PURPOSE
RS 12389C1
The primary purposes of this legislation are to make denial of a
mortgage broker or mortgage banker license discretionary instead of
mandatory in certain instances, make consistent the reasons for
denying a license and revoking a license, clarify that branch
licenses are dependent upon an initial license, allow the
Department of Finance to name individuals in a revocation order,
eliminate the trust account requirement for licensees, provide
enforcement authority to the Department for violations of federal
mortgage laws, and preempt financial or lending laws passed by
cities or counties.
FISCAL IMPACT
No fiscal impact.
CONTACT
Name: Mary Hughes
Agency: Finance, Dept. of
Phone: 208-332-8060
Statement of Purpose/Fiscal Impact H 2