NMLS MCR Enhancements

Changes have been made to the NMLS Mortgage Call Report (MCR) which have been reflected as of April 1, 2016.  The changes will affect the Residential Mortgage Loan Activity (RMLA) and the Financial Condition (FC) components for both standard and expanded filers. 

The following changes have been made:

• The MCR one-click print file option has been implemented (effective January 25, 2016);
• The CSV upload option has been added;
• Additional fields have been added for Qualified and Non-Qualified Mortgage Reporting; miscellaneous completeness check and calculation updates have been expanded;
• The definition of "application" has been revised and enforced.

  For more details, please visit this link.

Kansas Modifies Mortgage Business Act

Kansas has modified the provisions in the Mortgage Business Act, including, but not limited to, the following:

• Definitions added or amended:
  • "Application" means the submission of a consumer's financial information, including the consumer's name, income, and Social Security number to obtain a credit report, the property address, an estimate of the value of the property and the mortgage loan amount sought, for the purpose of obtaining an extension of credit.
  • "Bona fide office" is no longer limited to an applicant's or licensee's principal place of business with an office. 
  • "Individual" means a human being.
  • "Mortgage business" includes "holding the rights to" as follows: engaging in, or holding out to the public as willing to engage in, for compensation or gain, or in the expectation of compensation or gain, directly or indirectly, the business of making, originating, servicing, soliciting, placing, negotiating, acquiring, selling, arranging for others, or holding the rights to or offering to solicit, place, negotiate, acquire, sell or arrange for others, mortgage loans in the primary market.
  • "Mortgage servicing" means collecting payment, remitting payment for another or the right to collect or remit payment of any of the following: principal, interest, tax, insurance, or other payment under a mortgage loan.
  • "Not-for-profit" means a business entity that is granted tax-exempt status by the Internal Revenue Service.
  • "Primary market" means the market wherein mortgage business is conducted including activities conducted by any person who assumes or accepts any mortgage business responsibilities of the original parties to the transaction.
• Exemptions: A person who is licensed as a supervised lender pursuant to K.S.A. 16a-2-301 et seq., is no longer exempt from licensure. However, not-for-profit entities that provide mortgage loans in conjunction with a mission of building or rehabilitating affordable homes to low-income consumers are now exempt.
• Licensing and registration:
• Nothing under this act shall require a licensee to obtain any other license for the sole purpose of conducting non-depository mortgage business.
• A license or registration shall become effective as of the date specified in writing by the commissioner.
• Proof of display of license: Each licensee shall make available the evidence of licensure of each licensed location in a way that reasonably assures recognition by consumers and members of the general public.
• Each licensee shall now maintain a record of all solicitations or advertisements for a period of 36 months (previously 25 months).
• Each licensee shall maintain the following information: the name, address and telephone number of each loan applicant; the type of loan applied for and the date of the application; and the disposition of each loan application, including the date of loan funding, loan denial, withdrawal and name of lender if applicable and name of loan originator and any compensation or other fees received by the loan originator.
• Retention of records:
• Written report: Each licensee must annually file a written report with the commissioner containing the information that the commissioner may reasonably require concerning the licensee's business and operations during the preceding calendar year. The report shall be made in the form prescribed by the commissioner, which now may include reports filed with the nationwide mortgage licensing system and registry.

In addition, the provisions address bond requirements, prohibited acts, and the powers that the commissioner may exercise has expanded, including the ability to enter into any informal agreement with any mortgage company for a plan of action to address violations of law. 

These provisions are effective on July 1, 2016.

Tennessee Prohibits Certain Use of Multi-State Licensing System

The state of Tennessee amended provisions regarding industrial loan and thrift companies by prohibiting the commissioner of financial institutions from using a multi-state automated licensing system to share federal bureau of investigation criminal history background information of any individual other than mortgage loan originators, unless authorized to do so by the SAFE Mortgage Licensing Act of 2008 or other federal law.

These provisions are effective immediately.

Mississippi Amends Safe Mortgage Act

The state of Mississippi reenacted the SAFE Mortgage Act which was set to be repealed on July 1, 2016. In addition, amendments, such as, but not limited to, the following were made:

• The books, accounts, and records for individual consumer mortgage files must be maintained apart and separate from any other personal loan files made by the same consumer.
• Failure to produce the books and records within 60 days from the date of request may result in a violation, resulting in a civil penalty.
• Failure to file accurate, timely, and complete reports on the Nationwide Mortgage Licensing System and Registry may also result in a violation, resulting in a civil penalty.
• A licensee may not engage in the following: sign a consumer's name to a mortgage loan application or mortgage loan documents on behalf of a consumer; knowingly falsify income or asset information on a mortgage loan application or mortgage loan documents; or discourage a consumer in a mortgage loan transaction from seeking or obtaining independent legal counsel or legal advice.

These provisions are effective on July 1, 2016.