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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
]]]] 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 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