View Bill Status
View Bill Text
View Statement of Purpose / Fiscal Impact
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