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H0588...........................................................by BUSINESS
DEPARTMENT OF FINANCE - MORTGAGE BROKERS - Amends existing law to authorize
the Department of Finance to participate in the establishment and
implementation of a multistate automated licensing system for mortgage
brokers and lenders and individual mortgage loan originators; and to
require criminal history checks.
02/08 House intro - 1st rdg - to printing
02/09 Rpt prt - to Bus
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 588
BY BUSINESS COMMITTEE
1 AN ACT
2 RELATING TO THE POWERS AND DUTIES OF THE DIRECTOR OF THE DEPARTMENT OF
3 FINANCE; AMENDING SECTION 26-3105, IDAHO CODE, TO AUTHORIZE THE DIRECTOR
4 TO PARTICIPATE IN THE ESTABLISHMENT AND IMPLEMENTATION OF A MULTISTATE
5 AUTOMATED LICENSING SYSTEM FOR MORTGAGE BROKERS AND LENDERS AND INDIVIDUAL
6 MORTGAGE LOAN ORIGINATORS AND TO REQUIRE CRIMINAL HISTORY RECORD CHECKS.
7 Be It Enacted by the Legislature of the State of Idaho:
8 SECTION 1. That Section 26-3105, Idaho Code, be, and the same is hereby
9 amended to read as follows:
10 26-3105. POWERS AND DUTIES OF DIRECTOR. (1) In addition to any other
11 duties imposed upon the director by law, the director shall:
12 (1a) Administer and enforce the provisions and requirements of this chap-
13 ter;
14 (2b) Conduct investigations and issue subpoenas as necessary to determine
15 whether a person has violated any provision of this chapter or rules pro-
16 mulgated under the authority of this chapter;
17 (3c) Conduct examinations of the books and records of licensees and con-
18 duct investigations as necessary and proper for the enforcement of the
19 provisions of this chapter and the rules promulgated under the authority
20 of this chapter;
21 (4d) Appoint a volunteer advisory board which shall consist of two (2)
22 individuals who are mortgage lenders and two (2) individuals who are mort-
23 gage brokers;
24 (5e) Pursuant to chapter 52, title 67, Idaho Code, issue orders and pro-
25 mulgate rules that, in the opinion of the director, are necessary to exe-
26 cute, enforce and effectuate the purposes of this chapter;
27 (6f) Be authorized to set, by annual written notification to licensees,
28 limits on the fees and charges which are set forth in subsections (1) and
29 (2) of section 26-3113, Idaho Code;
30 (7g) Require that all funds collected by the department under this chap-
31 ter be deposited into the finance administrative account pursuant to sec-
32 tion 67-2702, Idaho Code; and
33 (8h) Review and approve forms used by licensees prior to their use as
34 prescribed by the director.
35 (2) The legislature has determined that a uniform multistate administra-
36 tion of an automated licensing system for mortgage brokers, mortgage lenders
37 and individual mortgage loan originators is consistent with both the public
38 interest and the purposes of this chapter; therefore, in order to participate
39 in the establishment and implementation of a multistate automated licensing
40 system for mortgage brokers, mortgage lenders and individual mortgage loan
41 originators, the director is authorized:
42 (a) To waive or modify, in whole or in part, by rule or order, any or all
43 of the requirements of sections 26-3108, 26-3108A, 26-3110 and 26-3111,
2
1 Idaho Code;
2 (b) To establish such new requirements as are necessary for the state of
3 Idaho to participate in a multistate automated licensing system upon the
4 director's finding that each new requirement is consistent with both the
5 public interest and the purposes of this chapter; and
6 (c) To require a background investigation of each applicant for a mort-
7 gage broker, mortgage lender or loan originator license by means of fin-
8 gerprint checks by the Idaho state police and the FBI for state and
9 national criminal history record checks, commencing at such time as Idaho
10 joins a multistate automated licensing system for mortgage brokers, mort-
11 gage lenders and individual mortgage loan originators pursuant to this
12 subsection (2). The information obtained thereby may be used by the direc-
13 tor to determine the applicant's eligibility for licensing under this
14 chapter. The fee required to perform the criminal history record check
15 shall be borne by the license applicant.
STATEMENT OF PURPOSE
RS 15710C1
The purpose of this bill is to amend the Idaho Residential Mortgage
Practices Act to permit Idaho licensed mortgage brokers, mortgage
lenders, and mortgage loan originators to readily convert to a
uniform nationwide mortgage licensing system when that system is
approved and adopted for implementation pursuant to a national
uniform mortgage licensing project spearheaded by industry
representatives, the Conference of State Bank Supervisors (CSBS),
and the American Association of Residential Mortgage Regulators
(AARMR).
FISCAL NOTE
No fiscal impact to the general fund. It is anticipated that a
nationwide mortgage licensing system may lead to an increase in the
number of Idaho licensees. This would lead to increased licensing
revenues to the Department's dedicated account.
Contact
Name: Mike Larsen, Department of Finance
Phone: 332-8060
STATEMENT OF PURPOSE/FISCAL NOTE H 588