NMLS Release 2016.1.2 Targeted for May 2, 2016

NMLS Release 2016.1.2 is targeted for delivery on May 2, 2016. The release contains general enhancements and system maintenance updates. For example, the MU2 section of the Individual Snapshot will be updated to display the corresponding industry and state(s) with their associated start and end dates for each Qualifying Individual and Branch Manager association.  The full summary of changes can be found here.

Colorado Modifies MLO Provisions

Colorado has modified provisions of the Mortgage Loan Originator Licensing and Mortgage Company Registration Act (Act) in an effort to conform more closely to applicable federal laws.  For instance, a new provision specifies that the board may adopt the uniform state test administered through the nationwide mortgage licensing system for the portion of the examination that represents the state-specific test required in the federal "Secure and Fair Enforcement for Mortgage Licensing Act of 2008." In addition, a parent who acts as a loan originator in providing loan financing to his or her child is exempt from licensing under the Act.  Also, the list of actions resulting in disciplinary actions has been expanded. 

These provisions become effective on August 10, 2016 (or 90 days following adjournment of the legislative session).

Kentucky Amends MLRA Provisions

Kentucky has amended certain provisions under the Mortgage Licensing and Regulation Act including, but not limited to, the following:

• The definition of "clerical or support duties" has been clarified. Communication that involves assisting a borrower or prospective borrower with the preparation of documents necessary to obtain a mortgage loan does not fall under this definition.
• The following new section will be added: A mortgage loan processor who is not registered or otherwise authorized to act as a mortgage loan originator shall not represent to the public or to individual consumers that he or she can, or is willing to, perform any of the activities of a mortgage loan originator.
• The following requirement has been removed: The license certificate of a mortgage loan broker shall be at all times prominently displayed at the mortgage loan broker's physical location.
• Provisions regarding mortgage loan processors have been added. A mortgage loan processor shall not be required to maintain a registration, but the processor's supervising mortgage loan company or mortgage loan broker shall be required to provide the mortgage loan processor with the continuing education as required, as well as perform an employee background check in accordance with uniform standards established by the commissioner prior to hiring an applicant as a processor, and provide proof of compliance with this section to the commissioner upon demand.

These provisions become effective on July 14, 2016 (or 90 days following adjournment of the legislative session).

Utah Amends RMPLA Provisions

Utah has modified the provisions in Residential Mortgage Practices and Licensing Act, including, but not limited to, the following:

• Definitions added or amended:
  • "Mortgage loan originator" now includes an individual who, for compensation or in the expectation of compensation, directly or indirectly solicits a residential mortgage loan for another person and is licensed as a mortgage loan origination in accordance with this chapter.
  • "Referral fee" now includes "other compensation" tendered for a referral of business or a service incident to or part of a residential mortgage loan transaction.
• Prohibited conduct added: A person transacting the business of residential mortgage loans in this state may not:
• Act incompetently in the transaction of the business of residential mortgage loans such that the person fails to: (i) safeguard the interests of the public; or (ii) conform to acceptable standards of the residential mortgage loan industry, or
• Sign or initial a document on behalf of another person, except for in a circumstance allowed by the Utah Division of Real Estate by rule, with the concurrence of the commission, made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
• In conducting investigations, records inspections, and adjudicative proceedings, the division may now issue a subpoena that requires: (i) the attendance and testimony of a witness; or (ii) the production of evidence.

These provisions become effective on May 10, 2016.