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|This Edition features: Mortgage Broker/Lender News Headlines as of 9/1/2002 ( click headline for explanation) for the following states:|
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
MORTGAGE CONSUMER PROTECTION LAW
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.
Not Certified by the Texas Board of Legal Specialization but licensed to practice in all areas of the law
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