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2008 SESSION

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HB 1097 Mortgage lenders and brokers; licensure and regulations.

Introduced by: Mark D. Sickles | all patrons    ...    notes | add to my profiles

SUMMARY AS INTRODUCED:

Mortgage Lender and Broker Act. Requires mortgage lenders and brokers required to be licensed under the Mortgage Lender and Broker Act to make a reasonable and good faith determination based on verified and documented information that a borrower has a reasonable ability to repay a nonqualified mortgage loan. The measure prohibits a mortgage lender from compensating a mortgage broker based on the terms of a nonqualified mortgage loan. The fine or penalty that may be imposed by the State Corporation Commission for a violation of either of these provisions is $5,000; for other violations of the Act, the maximum fine remains $2,500. Finally, the measure requires the employees of a mortgage lender or broker who originates mortgage loans to be registered with the Commissioner of the Bureau of Financial Institutions. Applicants for registration will be required to submit to a criminal background check and to satisfy training standards and education requirements. The employee registration provisions will become effective January 1, 2009.


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