The Arkansas Securities Department recently amended its regulations in regards to the Fair Mortgage Lending Act (the “Act”) by changing mortgage broker, mortgage banker, and mortgage servicer surety bond requirements and revising licensee reporting requirements for mortgage activity. New Jersey’s definition of “high cost” loans, Ohio’s prepayment penalty adjustment and Pennsylvania’s “base figure” adjustment were amended. The Oregon Department of Consumer & Business Services, Division of Finance & Corporate Securities issued a temporary administrative rule. The Florida Supreme Court issued an Administrative Order.
ARKANSAS FAIR MORTGAGE LENDING ACT RULES (effective December 1, 2011)
Rule 5005-8 Surety Bonds
If the aggregate amount of originated or funded mortgage loans, which are secured by Arkansas residential real property was no more than $10,000,000 (previously $5,000,000) during the prior calendar year, mortgage broker or mortgage banker licensees must post a surety bond in the amount of $100,000.
If the aggregate amount of mortgage loans, which are secured by residential real property held in the mortgage servicer licensee’s portfolio was no more than $10,000,000 (previously $5,000,000) during the prior calendar year, mortgage servicer licensees must post a surety bond in the amount of $100,000.
Rule 5006-2 Annual Reporting Requirements
This Rule has been reserved. Annual reporting requirements have been replaced with quarterly reporting requirements as discussed below.
Rule 5010-3 Reporting Requirements
A mortgage broker or mortgage banker licensed at anytime in Arkansas during the reporting period must file a quarterly report containing information regarding the mortgage activity in Arkansas. A mortgage servicer licensed anytime during the reporting period must file a quarterly report containing information regarding loans in the portfolio of the mortgage servicer. The quarterly report must be filed on a form provided by the Nationwide Mortgage Licensing System and Registry (“NMLSR”), and approved by the Arkansas Securities Commissioner (the “Commissioner”).
The quarterly report must be filed with the Commissioner no later than 45 days from the end of every calendar quarter. The reporting period is the calendar quarter immediately preceding the calendar quarter in which the report is due. In addition, the Commissioner may require the quarterly report to be supplemented with additional information about operations, characteristics of loans made, characteristics of loan services, or other similar composite data if the Commissioner determines that this additional information is necessary in order to protect the interests of the borrowing public.
The quarterly report must be verified by the oath of the licensee or a principal officer thereof. Failure of a licensee to submit a quarterly report in a manner required above will be grounds for discipline pursuant to the Act.
In order to reduce points of contact, the Commissioner authorizes the NMLSR to collect and distribute the quarterly report information, unless additional information is requested by the Commissioner. The Commissioner may require a supplemental report detailing the aggregate amount of Arkansas mortgage loans accepted, originated, or serviced in the prior calendar year if no report is available through the NMLSR.
NEW JERSEY DEPARTMENT OF BANKING AND INSURANCE BULLETIN 11-29 (issued December 20, 2011)
The New Jersey Department of Banking and Insurance (the “Department”) recently issued a Bulletin addressing the annual review required in the New Jersey Home Ownership Security Act of 2002 (“HOSA”) definition of a “high-cost home loan.”
The HOSA requires an annual review and, if necessary, adjustment of the maximum principal amount that will, subject to other triggering provisions in the HOSA, result in a loan being considered a high-cost home loan. This adjustment is based on the last published increase in the housing component of the national Consumer Price Index, New York – Northern New Jersey Region. After its review, the Department has increased the maximum principal amount for a determination that a loan may be considered a high-cost home from $430,955.10 to $438,298.70. The amount $438,298.70 will be effective for all completed loan applications on loans that may be subject to the HOSA received by the lender on or after January 1, 2012.
OHIO PREPAYMENT PENALTY ADJUSTMENT (effective January 1, 2012)
The Ohio Division of Financial Institutions recently issued a notice addressing the prepayment penalty adjustment for 2012. Effective January 1, 2012, prepayment penalties must not be imposed on the prepayment or refinancing of a residential mortgage loan less than $83,894 (previously $80,723).
OREGON TEMPORARY ADMINISTRATIVE RULES (effective December 15, 2011)
Our November 18, 2011 Compliance Memorandum discussed Oregon Senate Bill 628, effective January 2, 2012. The Department of Consumer & Business Services, Division of Finance & Corporate Securities recently issued a temporary administrative rule, which deletes certain content requirements for notices of foreclosure to comply with Oregon Senate Bill 628. The rule is effective from December 15, 2011 through June 12, 2012.
The toll-free consumer mortgage foreclosure information number and the information on federal loan modification programs need no longer appear on the notice of foreclosure.
PENNSYLVANIA “BASE FIGURE” ADJUSTMENT (effective January 1, 2012)
The Pennsylvania Department of Banking recently issued a notice addressing the base figure adjustment under the Loan Interest and Protection Law for 2012. Effective January 1, 2012, the base figure will be $230,110 (previously $221,540).
FLORIDA SUPREME COURT ADMINISTRATIVE ORDER AOSC11-44 (issued December 19, 2011)
The Florida Supreme Court recently issued an Administrative Order immediately terminating the statewide managed mediation program (the “program”) for residential mortgage foreclosure cases, which was established in 2009.
Cases already referred to and pending in the program on December 19, 2011 will remain in the program through completion of mediation. After December 19, 2011, new cases may not be referred to mediation pursuant to the program.