Texas Updates Regulations Impacting Mortgage Originations and Mortgage Servicing
Updated Regulations The Texas Department of Savings and Mortgage Lending (“Department”) issued updated rules relating to mortgage companies, loan originators, mortgage bankers, and mortgage servicers. The revisions are aimed at modernizing and updating the rules by adding and replacing language for clarity, removing unnecessary or duplicative provisions, and updating terminology. Mortgage Loan Originators, Mortgage Companies […]
Illinois Legislation Prohibits Misleading Marketing Aimed at Borrowers
Misleading Marketing Laws As of January 1, 2024, mortgage companies soliciting consumers in Illinois will need to ensure their marketing materials do not run afoul of the state’s new law designed to protect consumers from being misled. The new law provides that any marketing materials from a mortgage company with no connection to the consumer’s […]
Court Dismisses CFPB’s Attempt to Expand Redlining Prohibitions
Redlining Updates The CFPB’s first lawsuit against a nonbank mortgage lender for redlining has been dismissed byan Illinois federal Court. The Court held that the protections offered to actual loan applicants arenot extended to prospective applicants. Bureau of Consumer Fin. Prot. V. Townstone Fin., Inc.,2023 U.S. Dist. LEXIS 18405, 2023 WL 1766484 (N.D. Ill. Feb. […]
HMDA RiskExec
CFPB’S HMDA Reporting Threshold Returned to 25HMDA Reporting Threshold On September 23, 2022, the United States District Court for the District of Columbia entered a judgment invalidating the CFPB’s rule raising the HMDA reporting threshold to 100 covered loans. The court's decision returns the operative HMDA reporting threshold to 25 closed-end loans originated. Notably, the court’s ruling did not alter the […]
ECOA Compliance Regulatory Compliance Analytics Section 1071
Navigating Section 1071: The Value of a Flexible Regulatory Compliance Analytics PlatformSection 1071 Compliance requirements are ever-changing, and it’s crucial for banking, lending, and other financial institutions to not only stay up to date with the latest regulatory updates and changes, but also have access to a comprehensive — and flexible — regulatory compliance analytics platform. Regulatory agencies, such as the Consumer Financial Protection Bureau (CFPB) […]
KENTUCKY HOUSE BILL 285 The Kentucky legislature recently amended several provisions of its Consumer Loan Company Act (“Act”), effective June 26, 2019. "Consumer loan company" means a person licensed to engage in the business of making loans to a consumer for personal, family, or household use in the amount or value of $15,000 or less. […]
Legislative Updates The Nebraska legislature recently passed the Online Notary Public Act (“Act”), effective May 30, 2019. The Nevada legislature recently amended its laws to permit an individual to simultaneously apply for appointment as a notary public and register as an electronic notary public, and amended the licensing requirements for mortgage loan originators effective July […]
Legislative Updates The Georgia legislature recently amended provisions of its laws related to mortgage lenders and mortgage brokers, effective July 1, 2019. GEORGIA HOUSE BILL 185 A licensed mortgage lender is authorized to engage in all activities that are authorized for a mortgage broker and, as a result, is not required to obtain a mortgage […]
Regulatory Updates FEDERAL AGENCIES AMEND REGULATIONS REGARDING FLOOD HAZARD AREAS - 82 FEDERAL REGISTER 4953 The Office of the Comptroller of the Currency (“OCC”), the Board of Governors of the Federal Reserve System (“Board”), the Federal Deposit Insurance Corporation (“FDIC”), the Farm Credit Administration (“FCA”), and the National Credit Union Administration (“NCUA”) are amending their […]
Legislative Update The Arizona legislature recently amended its recording fees, effective June 30, 2019. The Arkansas legislature recently amended the Fair Mortgage Lending Act (the “Act”). It also amended its laws to require closing agents to provide certain disclosures when closing a transaction involving rural and agricultural properties and amended its Personal Information Protection Act. […]
Legislative Updates The Florida legislature recently amended its laws regarding licensing exemptions, effective July 1, 2019, while the New Hampshire legislature amended provisions affecting non-depository mortgage bankers, brokers, and servicers, effective May 15, 2019. FLORIDA HOUSE BILL 935 An individual who does not hold himself or herself out to the public as being in the […]
ILLINOIS REGULATION 38 IL ADMIN CODE PART 1050 The Illinois Department of Financial and Professional Regulation recently amended certain rules related to the Residential Mortgage License Act (“Act”) related to independent loan processors and advertisements, effective May 10, 2019. "Independent loan processing entity" means an entity engaged solely in providing loan processing services through the […]
Legislative Updates The New Jersey legislature recently revised the statute of limitations for foreclosures, amended its laws related to common interest associations regarding the recording of liens for unpaid assessments, amended its laws related to residential mortgage lending, all effective April 29, 2019. In addition, the legislature amended its related to foreclosure and abandoned properties, […]
Legislative Updates The West Virginia legislature recently amended its laws related to financial institutions and to provide for out-of-state commissioners who may take acknowledgments of deeds and other writings to be admitted for recording in West Virginia. The legislation discussed in this memorandum are effective May 30, and June 7, 2019 respectfully. WEST VIRGINIA SENATE […]
Legislative Updates The Utah legislature has recently amended its mortgage loan originator licensing laws to allow temporary authority, the law setting recording fees; the law regarding notices filed with the State Construction Registry (“Registry”); the laws allowing remote notarization and liability for notarial acts of an employee. All the laws discussed are effective May 13, […]
MASSACHUSETTS HOUSE BILL 4806 The Massachusetts legislature recently enacted legislation to protect consumer information, effective April 10, 2019. “Breach of security” means the unauthorized acquisition or unauthorized use of unencrypted data or, encrypted electronic data and the confidential process or key that is capable of compromising the security, confidentiality, or integrity of personal information, maintained […]
NEVADA TEMPORARY RULES CHAPTER 240 The Nevada Secretary of State recently issued temporary rules governing electronic notarizations, effective January 8, 2019. The regulations relate to the legislation enacted in 2017 (Assembly Bill 413) providing for electronic notarizations. See our memorandum dated June 7, 2018 for a discussion of the legislation. "Principal" means the natural person […]