Montana Amends Licensing Requirements under the Montana Mortgage Act
The Montana Department of Administration (the Department) has recently amended rules pertaining to pre-licensing education, the definition of "origination of a mortgage loan," the certification of bona fide not-for-profit entities, and the time frame in which an application is to be deemed abandoned under the Montana Mortgage Act (the Act).
Under the new rules, an individual seeking a mortgage loan originator's license must complete two hours of pre-licensing education specific to Montana residential mortgage statutes and rules. This time may be counted toward the completion of the 20 hours of pre-licensing education required by the Act. Note that on July 1, 2013, Montana adopted the Uniform State Test.
The new rules clarify the definition of "origination of a mortgage loan" to clearly exclude credit underwriting activities from licensing as long as the underwriter does not communicate directly with the borrower about specified credit terms.
In addition, the exemption section of the Act was amended to exempt entities that are bona fide not-for-profit entities from licensure. The amended rules direct that such an entity must certify that it meets the exemption by using the "Montana Bona Fide Not-For-Profit Certification" form both initially and annually.
The amended rules also state that a Mortgage Loan Originator License application is deemed abandoned if the applicant fails to provide the information requested by the Department within 60 days of notification of any deficiencies or December 31, whichever comes first.
New rules will become effective on March 1, 2014.
California Modifies Finance Lenders Law License Exemptions
The state of California recently modified provisions of the California Financial Code relating to mortgage lenders in Assembly Bill No. 1091. Existing law exempts California business and industrial development corporations, licensed pawnbrokers, and persons making no more than one commercial loan in a 12-month period from the California Finance Lenders Law.
The amended law will exempt from the Finance Lenders Law:
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California business and industrial development corporations when acting under federal law or other state authority
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Licensed pawnbrokers when acting under the authority of that license
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Persons making five or fewer commercial loans in a 12-month period as long as the loans are incidental to the business of the persons relying on the exemption
The legislation becomes effective on January 1, 2014.
Utah Amends Mortgage Loan Originator License Renewal Requirements
The Utah Division of Real Estate has amended the Utah Residential Mortgage Practices and Licensing Act rules regarding Mortgage Loan Originator License renewal. Licensees are now required to submit a fingerprint background report and a credit report to renew a license in the renewal period beginning November 1, 2015, and every fifth year following that renewal period. The amendment is effective immediately.
