[consisting of 1 to 4 dwelling units, including individual condominium units] located in this state.” S.B. 517 will go into effect on April 22, 2008.
Mississippi Requires Mortgage Licensees to Use Multistate Licensing System
On April 7, 2008 S.B. 2605 became law, amending the Mississippi Mortgage Consumer Protection Law (MMCPL), Miss. Code Ann. §§ 81-18-1 et seq., to clarify the statute and require the use of a multistate licensing system. The new law requires any entity or individual licensed under the MMCPL to use the multistate licensing system for application, renewal, surrender and any other activity required by the Commissioner of the Department of Banking and Consumer Finance. Finally, S.B. 2605 allows mortgage loan originators to work at any licensed location in Mississippi of the licensed company for which he/she works and creates a de minimis exemption from the MMCPL for persons who enter into no more than 12 residential mortgage loan transactions per calendar year. S.B. 2605 also requires individuals who own or acquire more than 10% of a licensed entity, down from 25%, to file an application for a license. S.B. 2605 became effective on April 7, 2008.
Massachusetts Loan Originator Applicants Must Complete 24 Hour Education Course
The Massachusetts Division of Banks (the Division) recently finalized and released Regulatory Bulletin 5.1-105 outlining the educational requirements that loan originator applicants must satisfy before securing licensure. Most notably, within 2 years of approval of individual licensure, Massachusetts loan originator applicants must complete an approved educational course consisting of at least 24 hours of classroom-based instruction. In addition, licensed loan originators must annually complete at least 8 hours of continuing residential mortgage lending education. Individuals are not required to fulfill the 24 hour course requirement if they (i) met the definition of mortgage loan originator prior to November 30, 2007, and (ii) apply for licensure prior to May 27, 2008. The Division instituted the new education requirements to ensure that applicants are knowledgeable about mortgage lending concepts, applicable law and regulations specific to the mortgage origination profession. We note that the Bulletin also outlines the requirements for a company seeking the Division’s approval of its mortgage loan origination educational courses.
NMLS First Quarter Operations are Successful
The Nationwide Mortgage Licensing System (NMLS) has concluded its first quarter of operations successfully. Events of note in the first quarter:
· Seven states with an estimated 83,144 licenses are participating on NMLS.
· MA Division of Banks is implementing its new loan originator licensing law through NMLS.
· Two states, Nebraska and Rhode Island, had transition deadlines during the first quarter. It is estimated that 78% of Nebraska company licensees and 74% of Rhode Island company licensees transitioned onto NMLS.
· Additional functionality was added to NMLS on March 31st that included data download capabilities for regulators and the first phase of reporting. The next release of the system is schedule for June 30th.
· The NMLS call center was instrumental in assisting licensees get onto and navigate through the system, handling an average of 400 calls a day.
NY Banking Department begins Company/Branch licensing on NMLS
Companies and sole proprietors that currently hold a NY Mortgage Broker Registration or a NY Mortgage Banker License, have from April 1, 2008 to September 1, 2008 to complete and submit through NMLS all necessary Form MU1s, Form MU2s and Form MU3s. Companies that have established their company record on NMLS can begin to submit licensing applications on behalf of their loan officers, as required under the New York law that went into effect on January 1st of this year.
Washington State DFI begins Consumer Loan Company Licensing on NMLS on May 1st
Companies holding a Washington State Consumer Loan Company License have from May 1, 2008 to September 1, 2008 to complete and submit through NMLS all necessary Form MU1s, Form MU2s, Form MU3s, and Form MU4s. WA-DFI will no longer accept Consumer Loan Company License applications via paper after April 18, 2008.
The following state agencies are expected to begin participating in NMLS in 2008.
Washington Department of Financial Institutions (Consumer Loan Company Licenses)
Connecticut Department of Banking
Louisiana Officer of Financial Institutions
Mississippi Department of Banking & Consumer Finance
New Hampshire State Banking Department
North Carolina Office of Commissioner of Banks
Vermont Department of Banking, Insurance, Securities, and Health Care Administrations
Washington Department of Financial Institutions (Mortgage Broker Licenses)
Arkansas Securities Department
Indiana Department of Financial Institutions
Pennsylvania Department of Banking
Wyoming Division of Banking
Note: These lists are an indication of intent. Official announcements of participation will be made by each agency in a communication to each of their licensees.