Administrative Rule Review Report  #AR09-073

Legislative Service Office

1-Dec-09

AGENCY: Department of Audit, Division of Banking.

DATE SUBMITTED: November 16, 2009.

SUBJECT: Chapter 1, General Matters and Definitions; Chapter 2, Mortgage Lender/Broker Licensing, Surety Bond, Prepayment Penalty Disclosure Form; and Chapter 3, Loan Originator Licensing, Fees, Information Challenge, Residential Mortgage Practices Act.

NATURE OF RULES:                     Legislative, procedural

STATUTORY AUTHORITY:         W.S. 40-23-103(a)(i).

DETERMINATION OF PROCEDURAL COMPLIANCE BASED UPON INFORMATION SUBMITTED BY THE AGENCY TO LSO:  Notice of the proposed adoption of new rules was provided by the LSO as required by W.S. 28‑9‑103(d).  No comments have been received to date.  Otherwise, procedural compliance is apparently complete to date.

SUMMARY OF RULES:  The rules being amended deal with the residential mortgages practice act.  Chapter 1 of the rules is amended to include a hearing on an application under W.S. 40-23-126(c) within the rules and to clarify the definition of "residential mortgage loan".  Chapter 2 of the rules is amended to require a surety bond, to specify that the disclosure form must be provided in accordance with W.S. 40-23-115 and to make additional technical corrections.  Chapter 3 of the rules is a new chapter establishing the licensing procedure for mortgage loan originators for primary liens.

FINDINGS:  The rules appear to be within the scope of statutory authority and legislative intent.

STAFF RECOMMENDATION:  That the rules be placed on the Consent List and be approved by the Council as submitted by the Agency.

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Joshua Anderson

Staff Attorney

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Lynda G. Cook

Staff Attorney

JDA/