Mortgage License Mall

http://www.thomas-law.com

 presents
a Free Mortgage License Newsletter VOL. VIII (9/17/2002)
containing Recent Developments of Mortgage Licenses in the 50 states

Providing mortgage professionals with FREE access to cost saving prospecting, officing, communications, origination and processing tools. Offering mortgage brokers and originators point-of-sale loan selection and conditional approval tools.
 This Edition features: Mortgage Broker/Lender News Headlines as of 9/1/2002 ( click headline for explanation) for the following states:

Headlines

  • NEW LICENSING LAWS IN CT STARTING OCTOBER 1, 2002- HIGHLIGHTS: New application packages for nondepository first and secondary mortgage lenders/brokers, correspondent lenders/ brokers, brokers only and loan originators are available for download. Effective October 1, 2002, individuals who originate loans for mortgage lenders or mortgage brokers must be registered as loan originators.
  • NEW LICENSING LAW IN NC STARTING JULY 1, 2002 - HIGHLIGHTS: PHYSICAL OFFICE, NEW LOAN OFFICER LICENSES/EXAMS REQUIRED AND LOSS OF HUD EXEMPTION
  • NEW LICENSING LAW IN OH STARTING MAY 2, 2002 - HIGHLIGHTS: NEW LOAN OFFICER LICENSES/EXAMS REQUIRED AND "EFFECTIVE" LOSS OF HUD EXEMPTION
  • NEW LICENSING LAW IN MS STARTING AUGUST 17, 2002 - WHOLESALE LENDER EXEMPTION AND "EFFECTIVE" LOSS OF HUD EXEMPTION
  • NEW LICENSING LAW IN GA STARTING JULY 1, 2002 - FINGER PRINT CARDS REQUIRED
  • HI: Qualified Foreign Lenders Should No Longer Register With DFI Or With Any Other State Agency
  • [NEXT NEWSLETTER WILL FEATURE NEW CT LICENSE CHANGE ON OCTOBER 1ST]

Advantages of Add-A-State Services:

  • Experience
  • Speed
  • Low Costs
  • Prompt Responses to State Agencies
  • Reduced Risk of Rejection
  • CALL ME FOR DETAILS - HERB THOMAS 214-692-7611-
  •  
  • NORTH CAROLINA
  • IF YOU ARE APPLYING FOR A NC MORTGAGE BROKER OR LENDER LICENSE, THIS IS THE NEW LAW:
    NC's Mortgage Lending Act : Effective July 1, 2002, the Mortgage Lending Act ("MLA" as codified in NCGS Chapter 53, Article 19A) requires that the NC Commissioner of Banks ("NCCOB") license any person engaged in the business of making or brokering residential mortgage loans. Persons or entities that must be licensed include:
    · Mortgage Lenders (formerly Mortgage Bankers), which includes all mortgage makers, except Mortgage Brokers and Table-Funding Bankers;
    · Mortgage Brokers (formerly both Mortgage Brokers and Table-Funding Bankers); and
    Loan Officers (formerly not required to be licensed under the old law). [THIS IS NEW!! ALSO THAT MORTGAGE BROKERS NEED A PHYSICAL OFFICE IN NC AND THAT LOAN OFFICERS HAVE TO TAKE AN EXAM] Before applying for a Mortgage Loan Officer License, an individual must have: [1] Completed a Mortgage Lending Fundamentals course approved by the COB, within the three-year period immediately preceding the date of the application; and [2] Passed the NC Mortgage Loan Officer Test at an official testing center, within the 90-day period preceding the date of application. Note: A Loan Officer is an individual who, in exchange for compensation as an employee of another person, accepts or offers to accept applications for mortgage loans. Employees whose responsibilities are limited to clerical and administrative tasks for his or her employer and who does not solicit borrowers, accept applications, or negotiate the terms of loans on behalf of the employer are not considered Loan Officers and do not require licenses.
    IF YOU THINK YOU ARE EXEMPT AS A HUD APPROVED LENDER OR YOU CURRENTLY HAVE A NC MORTGAGE BROKER OR LENDER LICENSE READ THIS!! DEADLINE SEPTEMBER 30TH TO OBTAIN A MORTGAGE BROKER OR LENDER LICENSE AND GET YOUR LOAN OFFICERS LICENSED
    Grandfathering Provisions
    The Mortgage Lending Act ("MLA") provides a streamlined licensing procedure for two classes of mortgage lenders/brokers and their employed loan officers. Mortgage lenders and brokers which were registered in NC under the former NCGS Chapter 53 Article 19 and/or which were HUD-Approved lenders as of June 30, 2002 can file for licensing under special grandfathering provisions of the new Mortgage Lending Act until September 30, 2002. Any Loan Officer employed by a grandfathered Mortgage Lender or Broker as of June 30, 2002 is also entitled to streamlined licensing.
  • Limited Time Only: Labor Day Double-Discount 5 & 10 & 20 State Specials Gigantic Discounts· 5 & 10 & 20 States of Your Choice*· Expedited Service· Due to Tremendous Response, Offer Had Been Extended to September 15th· For details call Herb Thomas at (214) 692-7611 http://www.thomas-law.com

 

Ohio Mortgage Broker Act:

Letter from Ohio Department of Commerce, Division of Financial Institutions, 77 South High Street • 21st Floor, Columbus, OH 43215-6120, (614) 728-8400 FAX (614) 728-0380 to Mortgage Brokers: As you know, Amended Substitute Senate Bill 76 (SB 76) will become effective on May 2, 2002, and will require a person wishing to become licensed as a mortgage loan officer under the Ohio Mortgage Broker Act (OMBA) to: (1) submit a completed application to the Division of Financial Institutions; (2) undergo a criminal and civil records background check; and (3) successfully pass the Ohio Mortgage Loan Officer Test. Operations Managers will be required to successfully pass the Mortgage Broker Operations Manager Test. Additionally, the new law places a continuing education (CE) requirement on both mortgage loan officers and operations managers.The purpose of this letter is to apprise you of recent developments and future plans concerning the implementation
of SB 76 by the Division of Financial Institutions (Division). This letter only provides a brief overview of the new law. Because SB 76 is complex and institutes a number of changes in Ohio’s mortgage broker industry, we recommend that you consult your legal counsel. It is your responsibility to know and understand the law.
Loan Officer Applications
A prospective mortgage loan officer must submit a completed application to the Division, along with a $100 application fee. The application is self-explanatory, and consists of a total of seven (7) pages. As instructed on the application, it must be notarized. For your convenience, we have enclosed a copy of the application. You may make as many photocopies as you need. The Division is currently accepting and processing completed loan officer applications.
The Division will process as many loan officer applications as possible prior to May 2, 2002. If an application is complete and there are no issues raised by the background check, the Division will issue a mortgage loan officer license, which will become effective May 2, 2002. Pursuant to SB 76, loan officers will have 90 days from the dates their licenses are issued to pass the test. If an officer does not successfully pass the test within 90 days, the license automatically terminates and the loan officer must begin the application process anew. For example, if a loan officer license is issued and becomes effective on May 2, 2002, the applicant must successfully pass the test on or before July 31, 2002.
Testing
SB 76 requires mortgage loan officers and mortgage broker operations managers to successfully pass tests approved by the Superintendent of the Division of Financial Institutions. The Division has entered into a contract with Experior Assessments, LLC to conduct the mortgage loan officer and mortgage broker operations manager testing. Experior has test sites throughout the state of Ohio, and has extensive experience providing licensing and
credentialing services to state and local regulatory agencies across an array of disciplines. For more information about Experior, visit their website at www.experioronline.com. The Division is currently working with Experior and the mortgage broker industry to develop test questions and to establish the score, which will serve as the minimum score examinees must obtain in order to successfully, pass the tests. It is anticipated that the operations manager test will consist of 100 multiple-choice questions and the loan officer test will consist of 75 questions. The tests will consist of questions concerning the Ohio Mortgage Broker Act, mortgage loan processes and programs, definitions of terms basic to the industry, and general provisions of federal laws, such as the Real Estate Settlement Procedures Act (RESPA). Experior will charge $59 each time a
prospective loan officer or operations manager takes the test and this fee is not included in the mortgage broker registration or loan officer license fees charged by the Division. Mortgage Broker operations managers for companies that are registered prior to May 2, 2002 have until April 30, 2003, to pass the Operations Manager Test.

MISSISSIPPI MORTGAGE CONSUMER PROTECTION LAW
REGULATIONS
#2002-2

This regulation is promulgated pursuant Section 81-18-5(c), Mississippi Code of 1972, Annotated, which states, in
part, “The following persons are not subject to the provisions of this chapter, unless otherwise provided in this chapter: Any person who is a wholesale lender, as defined in Section 81-18-3, or who is licensed by or directly supervised or audited by the Federal National Mortgage Association, the United States Department of Veterans Affairs, or the Federal Home Loan Mortgage Corporation, the Government National Mortgage Association or the United States Department of Housing and Urban Development; provided, however, that persons who
qualify for an exemption under this paragraph shall be subject to Sections 81-18-11, 81-18-21, 81-18-25, 81-18-27, 81-18-31, 81-18-35, 81-18-39 and 81-18-43.” The following is a clarification of the exemptions and the documents required for an initial and renewal exemption certificate:
1. Any person who is a wholesale lender, which is defined as any person or entity who makes a mortgage loan, or purchases or services mortgage loans, utilizing the services of a person exempted, licensed or registered under this chapter. This includes companies that only service mortgage loans made on Mississippi residential property. A letter, on company letterhead, from the principal of the company must accompany the initial and yearly renewal application stating the activities of the company.
2. Any person who is licensed by or directly supervised or audited by the Federal National Mortgage Association (FNMA), the Federal Home Loan Mortgage Corporation (FHLMC), or the Government National Mortgage Association (GNMA).
3. Any person who is licensed by or directly supervised or audited by the United States Department of Housing and Urban Development (HUD and is approved by such agency to make these loans in Mississippi. [THEREFORE IF YOU DO NOT HAVE MS AS A HUD APPROVED AREA -WHICH MEANS A PHYSICAL OFFICE WITH 250 MILES - THEN YOU ARE NOT ELIGIBLE FOR EXEMPTION]
4. Any person who is licensed by or directly supervised or audited by the Department of Veterans Affairs (VA) and is approved by such agency to make these loans in Mississippi. With regard to numbers 2 and 3 above, the following documentation must be provided to the Department of Banking and Consumer Finance in connection with the initial application for an exemption certificate: (a) a copy of the formal notice of approval from the applicable agency and (b) a copy of the most recent audited financial statement. With each subsequent yearly renewal application for an exemption certificate, a copy of the most recent audited financial statements must accompany the renewal application. With regard to number 3 above, a copy of the approval from the applicable agency to conduct business in Mississippi must accompany the initial application for an exemption certificate and each yearly renewal application thereafter. With regard to number 4 above, a copy of the notice of approval from the Department of Veterans Affairs must be provided in connection with the initial application for an exemption certificate. Also, if there should be changes in the matters contained in the initial application for approval from the Department of Veterans Affairs of said changes, then the Department of Banking and Consumer Finance should also be notified in writing of these changes
when notification is given to the Department of Veterans Affairs.
 

HI: Qualified Foreign Lenders Should No Longer Register With DFI Or With Any Other State Agency

During the 1999 Hawaii Legislative Session, the State law relating to mortgage loans (Chapter 207, Hawaii Revised Statutes ("HRS")) was amended by Act 43, Session Laws of Hawaii (1999), effective on April 26, 1999. Sections 207-14 and 207-15, HRS, were repealed. As a result, the exemptions and immunities described in Section 207-12, HRS, are now accorded to qualified foreign lenders without the need for registration of the foreign lender with DFI or with any other state agency. Since neither DFI nor any other state agency is authorized to interpret part II of Chapter 207, HRS, a lender should consult an attorney if it is uncertain about any provision there in Chapter 207, including whether it is a "foreign lender" as defined in Section 207-11, HRS, or whether it is entitled to the exemptions and immunities described in Section 207-12, HRS. The DFI cannot provide such legal advice and cannot render an opinion or interpretation of any provision in Chapter 207, HRS.

 

THOMAS LAW FIRM, P.C.
8080 NORTH CENTRAL EXPRESSWAY
SUITE 890
DALLAS, TEXAS 75206
214.692.7611 (VOICE) OR 692-7613 (FAX)

Not Certified by the Texas Board of Legal Specialization but licensed to practice in all areas of the law

 
DISCLAIMER:  The information provided on this Web site provides general information of interest to our clients and others, and should not be taken as legal advice for specific situations which depend on evaluation of precise factual circumstances. This website is purely a public resource of general information which is intended, but not promised or guaranteed, to be correct, complete and up-to-date. This website is not a source of legal advice, and thus the material provided on this website is not intended to create, and the receipt of it does not constitute, an attorney-client relationship. Internet suscriber and on-line reader should not rely on information provided here-in, and should always seek the advice of competent counsel in the reader's state. We can refer you to qualified independent attornies in your state upon request. Futhermore, the owner of this website does not wish to represent anyone desiring representation based on viewing this website in a state where this website fails to comply with all laws and ethics rules of that state.