Arkansas Amends its Fair Mortgage Lending Act
Arkansas has passed Senate Bill 188, the provisions of which become effective August 9, 2019. SB 188 modifies the Arkansas Fair Mortgage Lending Act in order to bring it in compliance with amendments to federal law which authorize the implementation of temporary or transitional mortgage loan officer licensing. Temporary loan officer licensing allows loan originators to continue to originate loans after moving from one state to another, or from a depository institution to a non-depository institution, pending their full licensure.
Under SB 188, a “transitional loan officer” is an individual who is authorized to act as a loan officer subject to a transitional loan officer license. A transitional license is a license that is issued under the provisions of Arkansas Code § 23-39-502: is limited to a term of 120 days: and is not subject to reapplication, renewal, or extension. Additionally, a transitional loan officer license will terminate when the transitional loan officer is no longer employed with a mortgage broker or mortgage banker licensed under Arkansas Code § 23-39-503, or when the transitional loan officer receives a loan officer license.
The full text of SB 188 may be found at: https://legiscan.com/AR/bill/SB188/2019
Adam Faria, JD, is a regulatory compliance consultant with CLA. He is a graduate of Northeastern University and earned his juris doctor at Suffolk University Law School. He is admitted to the bar in Massachusetts and New Hampshire.
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