2008 Legislation
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HOUSE BILL NO. 449<br /> – Mortgage lenders, licensing


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Bill Status

H0449...........................................................by BUSINESS
MORTGAGE LENDERS - Amends existing law to exempt regulated lenders from
licensing requirements in certain situations; to delete dual license
provisions for mortgage lenders; and to revise restrictions on business

02/01    House intro - 1st rdg - to printing
02/04    Rpt prt - to Bus
02/29    Rpt out - rec d/p - to 2nd rdg
03/03    2nd rdg - to 3rd rdg
03/06    3rd rdg - PASSED - 67-0-3
      AYES -- Anderson, Andrus, Barrett, Bayer, Bell, Bilbao, Block, Bock,
      Boe, Bolz, Bowers, Brackett, Bradford, Chadderdon, Chavez, Chew,
      Clark, Collins, Crane, Durst, Eskridge, Hagedorn, Hart, Harwood,
      Henbest, Jaquet, Killen, King, Kren, Labrador, Lake, LeFavour,
      Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer, Moyle,
      Nielsen, Nonini, Pasley-Stuart, Patrick, Pence, Raybould, Ringo,
      Roberts, Ruchti, Rusche, Sayler, Schaefer, Shepherd(02),
      Shepherd(08), Shirley, Shively, Smith(30), Smith(24), Snodgrass,
      Stevenson, Thayn, Thomas, Trail, Vander Woude, Wills, Wood(27),
      Wood(35), Mr. Speaker
      NAYS -- None
      Absent and excused -- Bedke, Black, Henderson
    Floor Sponsor - Hagedorn
    Title apvd - to Senate
03/07    Senate intro - 1st rdg - to Com/HuRes
03/19    Rpt out - rec d/p - to 2nd rdg
03/20    2nd rdg - to 3rd rdg
    Rls susp - PASSED - 35-0-0
      AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
      Cameron, Coiner, Corder, Darrington, Davis, Fulcher, Gannon, Geddes,
      Goedde, Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst,
      Little, Lodge, Malepeai(Sagness), McGee, McKague, McKenzie, Pearce,
      Richardson, Schroeder, Siddoway, Stegner, Stennett, Werk
      NAYS -- None
      Absent and excused -- None
    Floor Sponsor - Broadsword
    Title apvd - to House
03/21    To enrol - Rpt enrol - Sp signed
03/24    Pres signed
03/25    To Governor
03/31    Governor signed
         Session Law Chapter 312
         Effective: 07/01/08

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   Second Regular Session - 2008


                              IN THE HOUSE OF REPRESENTATIVES

                                     HOUSE BILL NO. 449

                                   BY BUSINESS COMMITTEE

  1                                        AN ACT

  6    Be It Enacted by the Legislature of the State of Idaho:

  7        SECTION 1.  That Section 28-46-301, Idaho Code, be, and the same is hereby
  8    amended to read as follows:

  9        28-46-301.  AUTHORITY  TO  MAKE REGULATED CONSUMER LOANS. (1) The adminis-
 10    trator shall receive and act on all applications for licenses  to  make  regu-
 11    lated consumer loans under this act. Applications shall be filed in the manner
 12    prescribed  by  the  administrator  and  shall contain such information as the
 13    administrator may reasonably require. Unless a person is exempt under  federal
 14    law or under this section or has first obtained a license from the administra-
 15    tor  authorizing  him to make regulated consumer loans, he shall not engage in
 16    the business of:
 17        (a)  Making regulated consumer loans; or
 18        (b)  Taking assignments of and undertaking direct collection  of  payments
 19        from  or enforcement of rights against debtors arising from regulated con-
 20        sumer loans.
 21        (2)  Any  "supervised  financial  organization,"  as  defined  in  section
 22    28-41-301(45), Idaho Code, or any person organized, chartered, or  holding  an
 23    authorization  certificate under the laws of another state to engage in making
 24    loans and receiving deposits, including  a  savings,  share,  certificate,  or
 25    deposit  account and who is subject to supervision by an official or agency of
 26    the other state, shall be exempt from the licensing requirements of this  sec-
 27    tion.
 28        (3)  Mortgage  lenders licensed under the Idaho residential mortgage prac-
 29    tices act, chapter 31, title 26, Idaho Code, shall be exempt from the  licens-
 30    ing  requirements of this section as to mortgage lending activities defined in
 31    chapter 31, title 26, Idaho Code.

 32        SECTION 2.  That Section 28-46-302, Idaho Code, be, and the same is hereby
 33    amended to read as follows:

 34        28-46-302.  LICENSE TO MAKE REGULATED CONSUMER LOANS. (1) The  administra-
 35    tor  shall receive and act on all applications for a license to do business as
 36    a regulated lender. Applications shall be filed in the  manner  prescribed  by
 37    the  administrator,  shall  contain  such information as the administrator may
 38    reasonably require, shall be updated as necessary to keep the information cur-
 39    rent, and shall be accompanied by an application fee of  three  hundred  fifty
 40    dollars  ($350). When an application for licensure is denied or withdrawn, the
 41    administrator shall retain all fees paid by the applicant.  The  administrator


  1    may deny an application for a license if the administrator finds that:
  2        (a)  The  financial  responsibility,  character, and fitness of the appli-
  3        cant, and of the officers and directors thereof (if  the  applicant  is  a
  4        corporation)  are  not such as to warrant belief that the business will be
  5        operated honestly and fairly within the purposes of this act;
  6        (b)  The applicant does not maintain  at  least  thirty  thousand  dollars
  7        ($30,000)  in  liquid  assets,  as determined in accordance with generally
  8        accepted accounting principles, available for the purpose of making  loans
  9        under this chapter;
 10        (c)  The  applicant  has  had  a  license,  substantially  equivalent to a
 11        license under this chapter and issued by any  state,  denied,  revoked  or
 12        suspended under the law of such state;
 13        (d)  The  applicant  has filed an application for a license which is false
 14        or misleading with respect to any material fact;
 15        (e)  The application does not contain all of the information  required  by
 16        the administrator; or
 17        (f)  The  application  is  not  accompanied by an application fee of three
 18        hundred fifty dollars ($350).
 19        (2)  A licensee under this chapter shall meet the requirements of  subsec-
 20    tion (1) of this section at all times while licensed pursuant to this chapter.
 21    The administrator is empowered to conduct investigations as he may deem neces-
 22    sary,  to enable him to determine the existence of the requirements set out in
 23    subsection (1) of this section.
 24        (3)  The director may issue a license under this act to a mortgage  lender
 25    licensed  under  chapter  31,  title 26, Idaho Code, and who is engaged in the
 26    business described in subsection (1)(a) or (b)  of  section  28-46-301,  Idaho
 27    Code.  All provisions of this act, except subsections (1) and (2) of this sec-
 28    tion, shall apply to persons seeking a license pursuant to this subsection.
 29        (4)  Upon written request, the applicant is entitled to a hearing  on  the
 30    question of his qualifications for a license if:
 31        (a)  The  administrator  has  notified  the  applicant in writing that his
 32        application has been denied, or objections filed; or
 33        (b)  The administrator has not issued a license  within  sixty  (60)  days
 34        after the application for the license was filed.
 35        If  a  hearing  is  held,  the applicant and those filing objections shall
 36    reimburse, pro rata,  the  administrator  for  his  reasonable  and  necessary
 37    expenses  incurred as a result of the hearing. A request for a hearing may not
 38    be made more than fifteen (15) days after the administrator has mailed a writ-
 39    ing to the applicant notifying him that the application has  been  denied  and
 40    stating  in  substance  the   administrator's finding supporting denial of the
 41    application or that objections have been filed and the substance thereof.
 42        (54)  The administrator may issue additional licenses to the same licensee
 43    upon application by the licensee, in the manner prescribed by the  administra-
 44    tor,  and payment of the required application fee. A separate license shall be
 45    required for each place of business. Each license shall remain in  full  force
 46    and  effect  unless  the licensee does not satisfy the renewal requirements of
 47    subsection (87) of this section, or the license is relinquished, suspended  or
 48    revoked.
 49        (65)  No  licensee  shall change the location of any place of business, or
 50    consolidate, or close any locations, without giving the administrator at least
 51    fifteen (15) days' prior written notice. No licensee shall change the location
 52    of any of his places of business to a location more than five (5)  miles  from
 53    the original location or outside the original municipality, if any.
 54        (76)  A licensee shall not engage in the business of making regulated con-
 55    sumer  loans at any place of business for which he does not hold a license nor


  1    shall he engage in business under any other name than that in the license.
  2        (87)  On or before May 31 of each year, every licensee under this  chapter
  3    shall pay a nonrefundable annual license renewal fee of one hundred fifty dol-
  4    lars  ($150)  per  licensed  location, and shall file with the administrator a
  5    renewal form containing such information as the administrator may require.

Statement of Purpose / Fiscal Impact

                    STATEMENT OF PURPOSE

                          RS 17342

The purpose of this bill is to amend the Idaho Credit Code to 
add a mortgage retail lending exemption for entities solely 
engaged in mortgage lending and already licensed under the Idaho 
Residential Mortgage Practices Act.  This bill would also 
eliminate a restrictive and unnecessary limitation on businesses 
from relocating more than five miles from their initial licensed 

                        FISCAL NOTE

Based on current dual licensee numbers, the Department estimates 
that implementation of this legislative idea would result in an 
annual revenue reduction of approximately $145,000.

Name:	Michael Larsen
Agency:	Finance, Dept. of
Phone:	(208) 332-8060