2005 Legislation
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HOUSE BILL NO. 72 – Residentl mortgage practice/exmptn


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Bill Status

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

Bill Text

  ]]]]              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
  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
  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 / Fiscal Impact

                     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



Name:     Michael Larsen
Agency:   Finance, Dept. of
Phone:    332-8060

Statement of Purpose/Fiscal Impact                       H 72