Colorado Revises MLO Exemption
Colorado has revised an exemption from mortgage loan originator licensure. More specifically, an individual who acts as a mortgage loan originator, without compensation or gain to the mortgage loan originator, in providing loan financing for not more than three residential mortgage loans in any 12-month period to a family member of the individual, is exempt from licensure. For purposes of this exemption only, “compensation or gain” excludes any interest paid under the loan financing provided. Previously, the exemption was more limited, exempting a parent who acts as a loan originator in providing loan financing to his or her child.
These provisions are effective on August 9, 2017.
Connecticut Adds Lead Generator License
On January 1, 2018, Connecticut will require that a person acting as a lead generator obtains a license, unless exempt. A lead generator means “a person who, for or with the expectation of compensation or gain, [s]ells, assigns or otherwise transfers one or more leads for a residential mortgage loan; generates or augments one or more leads for another person; or directs a consumer to another person for a residential mortgage loan by performing marketing services, including, but not limited to, online marketing, direct response advertising, or telemarketing.” A “lead” includes any information identifying a potential consumer of a residential mortgage loan.
The following will be exempt from licensing:
-
Any bank, out-of-state bank, Connecticut credit union, federal credit union, or out-of-state credit union, provided such bank or credit union is federally insured;
-
Any wholly owned subsidiary of any such bank or credit union;
-
Any operating subsidiary where each owner of such operating subsidiary is wholly owned by the same such bank or credit union;
-
Any person licensed as a mortgage lender, mortgage correspondent lender or mortgage broker in this state, provided such exemption shall not be effective during any period in which the license of such person is suspended;
-
A consumer reporting agency, as defined in Section 603 (f) of the Fair Credit Reporting Act, 15 USC 1681a, as amended from time to time; and
-
An employee of a person licensed as a lead generator or exempt from licensure as a lead generator, while engaged in lead generator activities on behalf of such person.
Provisions regarding application, renewal, notification, recordkeeping, and disclosure requirements for lead generators have also been added.
Maine Amends Consumer Credit Code Provisions
Maine has expanded the scope of its Consumer Credit Code to include mortgage loan servicers. A “mortgage loan servicer” means a person or organization that undertakes direct collection of payments from or enforcement of rights against debtors arising from a supervised loan secured by a dwelling. As such, a “supervised lender” means a person authorized to make or take assignments of or to service supervised loans.
These provisions are effective on September 19, 2017 (or 90 days following adjournment of the current legislative session).
