Nebraska Amends Mortgage Licensing Act & Modifies Broker Provisions
by: Matthew Dailey
Two legislative bills approved by the governor of Nebraska earlier this year will go into effect on October 4, 2013. Legislative Bill 290 revised the Residential Mortgage Licensing Act primarily by changing provisions relating to notice requirements of a licensee. Legislative Bill 279 essentially redefined what constitutes a loan broker in Nebraska.
Legislative Bill 290
Section 45-737 is amended to read that a licensee licensed as a mortgage banker must notify the Director of Banking and Finance (director) in writing or through the Nationwide Mortgage Licensing System and Registry within three business days if the attorney general of any state, the Consumer Financial Protection Bureau, or the Federal Trade Commission initiates an action to enforce consumer protection laws against the licensee or any of the licensee’s officers, directors, shareholders, partners, members, employees, or agents. This also applies where the Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, Federal Housing Administration, or Government National Mortgage Association suspends or terminates the licensee’s status as an approved seller or seller and servicer.
Similarly, the licensee has thirty days to inform the director upon the relocation or closing of a branch office, or entry of an order against the licensee or any of the licensee’s officers, directors, shareholders, partners, members, employees, or agents, including orders to which the licensee or other parties consented, by
any other state or federal regulator.
Section 5 states that any licensed mortgage loan originators shall notify the director in writing or through the Nationwide Mortgage Licensing System and Registry within three business days after the filing of a voluntary petition in bankruptcy, a criminal indictment or information against such licensee involving dishonesty or fraud or which includes any aspect of the mortgage banking business, or initiation of an action (by the attorney general of any state, the Consumer Financial Protection Bureau, or the Federal Trade Commission) to enforce consumer protection laws against such licensee. The licensee must notify the director if the Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, Federal Housing Administration, or Government National Mortgage Association suspends or terminates such licensee’s status as an approved loan originator.
Finally, a licensed mortgage loan originator must update their employment history through the Nationwide Mortgage Licensing System and Registry within ten business days after any change in status but within thirty days for a change in name or address.
Legislative Bill 279
Section 45-190 was amended to show that by definition, a “loan broker” is a person and not a bank, trust company, credit union, mortgage or a lender.
Section 45-920 was amended to read that the director of Banking and Finance may accept and provide any examination, report, or information regarding a licensee from the Consumer Financial Protection Bureau or a foreign state agency. The statute makes clear that a foreign state agency means any duly constituted regulatory or supervisory agency which has authority over delayed deposit services businesses, payday lenders, or similar entities, and which is created under the laws of any other state or any territory of the United States.
About the Author:
Matthew Daily, J.D. is a Regulatory Compliance Consultant at Bankers Advisory, Inc. He is a graduate of Stonehill College and earned his Juris Doctor at the New England School of Law. He is admitted to the Massachusetts Bar. Matthew can be reached at matthew@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.
Comments are closed.