Bill No.: SF0013                  Drafter:  MRW

 

LSO No.:  05LSO-0074              Effective Date:  2/25/2005

 

Enrolled Act No.:  SEA0054

 

Chapter No.:       117

 

Prime Sponsor:     Joint Minerals, Business and Economic Development Interim Committee

 

Catch Title:       Residential Mortgage Practices Act.

 

Subject:  Creates the Residential Mortgage Practices Act.

 

Summary/Major Elements:

 

·        Regulates mortgage lenders and brokers, provides for license requirements, fees, enforcement, bonding and for civil and criminal penalties.  The civil penalties will be credited to the public school fund.

 

·        Defines the duties of the banking commissioner relating to mortgage brokers and lenders and allows the banking commissioner to conduct examinations.

 

·        Requires the licensee to maintain records, disclose mortgage lender fees or mortgage broker fees, disclose loan terms and trust accounts.

 

·        Identifies prohibited practices of the licensee and defines how a license can be suspended or revoked by the banking commissioner.

 

·        Authorizes 2 additional positions to the department of audit, division of banking.

 

·        Provides an appropriation of $175,000 and for a request for $350,000 in the 2007-2008 budget request.

 

Comments:

 

·  Creates the Residential Mortgage Practices Act.