Mississippi Revises SAFE Act Provisions
by: Lee Greenberg, Esq.
The state of Mississippi recently revised several SAFE Act provisions through the enactment of Senate Bill No. 2696. The new law has an effective date of July 1, 2013 and includes the following amendments:
• A revised definition of “qualifying individual” as it is used in the Act and as it pertains to applications for mortgage broker or lender licenses through the Nationwide Mortgage Licensing System and Registry (NMLS). Under the law, an application for a mortgage broker or lender license must include documentation by a person named as the qualifying individual of the company. A qualifying individual is an owner or employee of a mortgage broker or lender who submits documentation of two years’ experience directly related to mortgage activities and who is primarily responsible for the operations of the licensed mortgage broker or mortgage lender.
• The new law requires stockholders, owners, directors and executive officers of an applicant for licensing as a mortgage broker or lender to furnish identity information about the applicant to the NMLS. Applicant identity information includes fingerprints, personal history and experience as well as an authorization for the NMLS to obtain an applicant’s credit report and any other information related to administrative, civil or criminal findings against the applicant.
• Upon receipt of an application for licensure, the law requires an investigation to determine that the applicant, its officers, directors and principals are of good character and ethical reputation, that the applicant demonstrates reasonable financial responsibility, and that the applicant has fair and reasonable policies and procedures to receive and promptly process customer grievances and inquiries.
• The law requires the Commissioner of the Mississippi Department of Banking and Consumer Finance to issue a mortgage broker or lender license if all license application requirements are met. However, an application for licensure may be denied if the applicant has had a mortgage lender, broker or servicer license revoked in any jurisdiction or if the applicant has been convicted of, or pled guilty or no contest to, a felony during the seven-year period preceding the date of application for licensing, or any crime of moral turpitude at any time preceding the date of application.
• The law amends licensing and renewal fees for mortgage brokers and lenders, increases licensing and renewal fees for branches and increases examination fees.
• Licensees who are involved in civil actions are required to notify the NMLS within 60 days of the occurrence. Such notification must include an explanation and supporting documentation for each civil action concerning the company.
• Lastly, licensees are required to maintain a separate journal of mortgage transactions for all Mississippi residential loans that the licensee originated and/or funded and a separate journal of serviced loans for all Mississippi residential loans that the licensee owns and/or services.
About the Author:
Lee Greenberg, Esq. is Vice President and Senior Counsel at Bankers Advisory, Inc. and oversees the firm’s compliance educational programs. Lee is a graduate of the University of Colorado at Boulder and earned his Juris Doctor at the New England School of Law. Lee is admitted to the Massachusetts Bar. He can be reached at lee@bankersadvisory.com
Anna DeSimone founded Bankers Advisory in 1986 and is a nationally recognized authority in residential mortgage lending. She has received numerous industry awards and has authored more than 40 best practices guides and hundreds of articles.
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