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H0072...........................................................by BUSINESS
RESIDENTIAL MORTGAGE PRACTICES - Amends existing law relating to
residential mortgage practices to remove the exemption for certain agents
who act under exclusive contracts.
01/28 House intro - 1st rdg - to printing
01/31 Rpt prt - to Bus
02/24 Rpt out - rec d/p - to 2nd rdg
02/25 2nd rdg - to 3rd rdg
03/03 3rd rdg - PASSED - 65-0-5
AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer, Bell,
Bilbao, Black, Block, Boe, Bolz, Bradford, Cannon, Chadderdon, Clark,
Collins, Deal, Denney, Edmunson, Ellsworth, Field(18), Field(23),
Garrett, Hart, Harwood, Henbest, Henderson, Jaquet, Jones, Kemp,
Lake, LeFavour, Martinez, Mathews, McGeachin, McKague, Miller,
Mitchell, Moyle, Nielsen, Nonini, Pasley-Stuart, Pence, Raybould,
Ring, Ringo, Roberts, Rusche, Rydalch, Sali, Sayler, Shepherd(2),
Shepherd(8), Shirley, Skippen, Smith(30), Smith(24), Smylie,
Snodgrass, Stevenson, Trail, Wills, Wood, Mr. Speaker
NAYS -- None
Absent and excused -- Bedke, Crow, Eskridge, Loertscher, Schaefer
Floor Sponsor - Bilbao
Title apvd - to Senate
03/04 Senate intro - 1st rdg - to Com/HuRes
03/16 Rpt out - rec d/p - to 2nd rdg
03/17 2nd rdg - to 3rd rdg
03/23 3rd rdg - PASSED - 34-0-0, 1 vacancy
AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett,
Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough, Langhorst,
Little, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce, Richardson,
Schroeder, Stegner, Stennett, Sweet, Werk, Williams
NAYS -- None
Absent and excused -- (District 21 seat vacant)
Floor Sponsor - Malepeai
Title apvd - to House
03/24 To enrol
03/28 Rpt enrol - Sp signed
03/29 Pres signed
03/30 To Governor
04/05 Governor signed
Session Law Chapter 261
Effective: 07/01/05
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature First Regular Session - 2005
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 72
BY BUSINESS COMMITTEE
1 AN ACT
2 RELATING TO THE RESIDENTIAL MORTGAGE PRACTICES ACT; AMENDING SECTION 26-3103,
3 IDAHO CODE, TO REMOVE THE EXEMPTION FOR CERTAIN AGENTS WHO ACT UNDER
4 EXCLUSIVE CONTRACTS.
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) Regulated lenders licensed under the Idaho credit code and regularly
17 engaged in making regulated consumer loans other than those secured by a secu-
18 rity interest in real property;
19 (5) Trust companies as defined in section 26-3203, Idaho Code;
20 (6) Any person licensed or chartered under the laws of any state or of
21 the United States as a bank, savings and loan association, credit union, or
22 industrial loan company. The terms "bank," "savings and loan association,"
23 "credit union" and "industrial loan company" shall include employees and
24 agents of such organizations as well as wholly-owned subsidiaries of such
25 organizations, provided that the subsidiary is regularly examined by the char-
26 tering state or federal agency for consumer compliance purposes, and shall
27 also include employees and agents of a licensee if the licensee is an affili-
28 ate of a bank and is wholly owned by the holding company system that owns the
29 bank;
30 (7) Attorneys, or persons licensed under chapter 2, title 54, Idaho Code,
31 provided that the license held by such attorneys or persons is in an active
32 status;
33 (8) Persons employed by, or who contract with, a licensee under this
34 chapter to perform only clerical or administrative functions on behalf of such
35 licensee, and who do not solicit borrowers or negotiate the terms of loans on
36 behalf of the licensee; or agents who act under an exclusive contract with no
37 more than one (1) licensee on a full-time or part-time basis;
38 (9) Any person or entity not making more than five (5) loans primarily
39 for personal, family, or household use and primarily secured by a security
40 interest on residential real property, with his own funds for his own invest-
41 ment, in any period of twelve (12) consecutive months; nor
42 (10) Any person who funds a residential mortgage loan which has been orig-
43 inated and processed by a licensee or by an exempt person, who does not
2
1 directly or indirectly solicit borrowers in this state for the purpose of mak-
2 ing residential mortgage loans, and who does not participate in the negotia-
3 tion of residential mortgage loans with the borrower. For the purpose of this
4 subsection, "negotiation of residential mortgage loans" does not include set-
5 ting the terms under which a person may buy or fund a residential mortgage
6 loan originated by a licensee or exempt person.
STATEMENT OF PURPOSE
RS 14380
The purpose of this bill is to remove exemption language within the
Idaho Residential Mortgage Practices Act that is internally
incompatible with the loan originator licensing provisions within
that Act.
FISCAL IMPACT
No fiscal impact
CONTACT
Name: Michael Larsen
Agency: Finance, Dept. of
Phone: 332-8060
Statement of Purpose/Fiscal Impact H 72