New Hampshire Amends Provisions Regarding General Consumer Credit Laws
by: Amanda Nicholson
The state of New Hampshire has made changes to the laws governing mortgage bankers, mortgage brokers, loan servicers and services offered to consumers. The amendments apply to obtaining a broker or banker license and maintaining copies of documents. These amendments have also repealed the provisions limiting an individual from working as a mortgage originator for more than 1 broker, servicer or banker. These amendments will take effect on September 22, 2013.
Mortgage Banker and Brokers; Prohibitions
Amends’ RSA 397-A
Under the amended section of RSA 397-A, no individual may act as an originator for more than one mortgage broker, mortgage servicer, mortgage banker, or other financial institution at the same time, unless the entities are affiliates. Also, a sole proprietor licensed as a mortgage broker, mortgage servicer or mortgage banker shall also obtain a license as a mortgage originator prior to acting as a mortgage originator. The following exemptions apply to this rule: Federal, state, or local government agencies, instrumentalities, and corporations and the employees of such entities who act as loan originators pursuant to their official duties as employees of the entities provided that, limited to activities that would otherwise be within the scope of Chapter 257.
Licensing for Mortgage Bankers and Brokers
A branch office license and originator license is only in effect when the associated mortgage banker or mortgage broker is licensed in this state. Each branch manager of a location is required to be licensed as a branch office under this chapter shall be licensed a mortgage loan originator. All licensees shall ensure that the nationwide mortgage license system and registry unique identifier of any person originating a residential mortgage loan shall be clearly shown on all residential mortgage loan applications forms, solicitations or advertisements, including business cards to websites, and any other documents as established by rule, regulation, or order of the commissioner. Licensees shall be responsible for the supervision of their employees, agents, loan originators and branch offices. If a mortgage banker or broker is a person other than a natural person, the license shall entitle all officer, directors, members, partners, trustees, agents, originators and employees of the licensed person to make or broker loans as long as they are licensed as originators. If the mortgage broker or banker is a natural person, the license shall entitle all employees, agents, and originators of the licenses to make or broker loans as long as the individuals are licensed originators.
Record Keeping and Investigation for Mortgage Bankers, Brokers and Servicers
The licensee shall maintain all records that will enable the department to determine if the licensees, business is in compliance with the provisions of this chapter. All records shall be maintained in a readily accessible location and made available for examination at the license’s New Hampshire Principal Office for at least 3 years after the license’s final transaction on a loan or application file. If the licensee maintains their files and business records in another state they have 21 calendar days after being requested to produce records to have them produced. The licensee first must provide a list to the commissioner within 7 calendar days after request and then provide the files selected by the commissioner to the commissioner within 14 calendar days to ensure they are in compliance with the 21 day requirement. If the licensee fails to comply the licensee or person is subject to a fine of $ 50 per day for each day past the 21 days requirement. Failure to provide the files within 60 days shall be enough cause for a license revocation, suspension or denial of a future license.
Mortgage Bankers and Brokers; Borrowers’ Rights
Reverse Mortgage – In a reverse mortgage transaction, any credit derived from offering an interest rate higher than the par rate shall only be paid to the borrower or used to pay the borrowers costs, and shall not be used as an additional source of compensation.
Good Faith Estimate – Every field on the GFE forms shall be completed before it is given to the borrower. The tradeoff table on the instruction page of the GFE shall be completed when the originating company is not funding the loan.
About the Author:
Amanda Nicholson, J.D. is Associate Counsel and Compliance Specialist at Bankers Advisory. She is a graduate of the University of Southern Maine and earned her Juris Doctor at the Massachusetts School of Law. She can be reached at amanda@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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