Nebraska and North Carolina Legislative Update

Nebraska and North Carolina Legislative Update

The Nebraska legislature recently amended the Loan Broker Act and the Installment Loan Act, effective September 5, 2013, and the North Carolina legislature recently amended the North Carolina Secure and Fair Enforcement Mortgage Licensing Act (the “Act”) with regard to the licensing of transitional mortgage loan originators, effective September 1, 2013.

NEBRASKA LEGISLATIVE BILL 279

 

The Director of Banking and Finance may accept or provide any examination, report, or information regarding a licensee under the Loan Broker Act from the Consumer Financial Protection Bureau or a foreign state agency.  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, including Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, or the Virgin Islands, or which is operating under the code of law for the District of Columbia.

 

 

Under the Nebraska Installment Loan Act, a license will remain in full force and effect until the following December 31 (previously March 1).

NORTH CAROLINA HOUSE BILL 616

 

 

“Transitional mortgage loan originator” means an individual who is authorized to act as a mortgage loan originator subject to a transitional mortgage loan originator license, which is limited to a term of no more than 120 days and is not subject to reapplication, renewal, or extension by the Commissioner of Banks (the “Commissioner”).

 

 

The definition of “licensee” under the Act now includes a transitional mortgage loan originator.

 

 

The provisions of the Act that apply to mortgage loan originators now apply to transitional mortgage loan originators.

 

 

It is unlawful for any person, other than an exempt person, person or a person licensed as a transitional mortgage loan originator, to act as a mortgage loan originator without a mortgage loan originator license.

 

 

A transitional mortgage loan originator license may be granted to an individual who has an active license to originate mortgage loans according to the laws of any state or territory of the United States other than North Carolina, provided the individual registers, is fingerprinted, and maintains a unique identifier with the Nationwide Mortgage Licensing System and Registry (“NMLS”) at the time the individual submits a transitional mortgage loan originator application to the Commissioner.

 

 

A transitional mortgage loan originator license may also be issued to a registered loan originator for the purpose of satisfying all requirements necessary to obtain a license as a mortgage loan originator if permitted by a guideline, rule, regulation, or interpretive letter which clarifies the federal SAFE Act, and only to the extent of such an issuance or determination.

 

 

Each individual applicant for licensure as a transitional mortgage loan originator must:

  • Be at least 18 years of age;
  • Have an active license to originate mortgage loans according to the laws of any state or territory of the United States other than North Carolina;
  • Have a valid unique identifier, registration, and fingerprints on file with the NMLS;
  • Have been employed for a period of no less than 2 years as a mortgage loan originator; and
  • Have provided certification of employment with a mortgage lender or mortgage broker who is licensed, including an attestation by the employer that the applicant is employed by him or her.