HB247 (2011) Detail

Relative to seller financing of mortgages and making changes to the laws regulating mortgage bankers and brokers and debt adjustment services.


HB 247 – AS INTRODUCED

2011 SESSION

11-0617

01/09

HOUSE BILL 247

AN ACT relative to seller financing of mortgages and making changes to the laws regulating mortgage bankers and brokers and debt adjustment services.

SPONSORS: Rep. White, Graf 11; Sen. Houde, Dist 5

COMMITTEE: Commerce and Consumer Affairs

ANALYSIS

This bill adds exemptions to the licensure law regarding mortgage bankers and brokers for persons who negotiate no more than 4 or fewer residential mortgage loans in a calendar year.

The bill makes various changes to the laws regulating mortgage bankers and brokers and debt adjustment services.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

11-0617

01/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Eleven

AN ACT relative to seller financing of mortgages and making changes to the laws regulating mortgage bankers and brokers and debt adjustment services.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Paragraph; Mortgage Bankers and Brokers; Definition Added. Amend RSA 397-A:1 by inserting after paragraph I the following new paragraph:

I-a. “Affiliate” means a relationship between 2 persons if either person has the power to control the other, or a third person who controls or has the power to control both. Affiliates also exist where persons have:

(a) Interlocking directorates or ownership;

(b) Identity of interests among members of a family; and

(c) Shared employees, equipment, and/or facilities.

2 New Paragraph; Mortgage Bankers and Brokers; Definition Added. Amend RSA 397-A:1 by inserting after paragraph IV the following new paragraph:

IV-a. “Business” means a dealing or transaction.

3 Mortgage Bankers and Brokers; Definitions. Amend RSA 397-A:1, VII to read as follows:

VII. “First mortgage loan” means a loan secured in whole or in part by a mortgage upon any interest in real property used or intended to be used as a dwelling with accommodations for not more than 4 families, which property is not subject to the lien of any prior mortgage, and shall include retail installment contracts secured by manufactured housing as defined in RSA 384:16-d, II and the renewal, modification, or refinancing of an existing first mortgage loan.

4 Mortgage Bankers and Brokers; Definitions. Amend RSA 397-A:1, XXII to read as follows:

XXII. “Second mortgage loan” means a loan secured in whole or in part by a mortgage upon any interest in real property used or intended to be used as a dwelling with accommodations for not more than 4 families, which property is subject to the lien of one or more prior mortgages, and shall include home equity loans and the renewal, modification, or refinancing of an existing second mortgage loan.

5 Mortgage Bankers and Brokers; Definitions. Amend RSA 397-A:1, XXVI to read as follows:

XXVI. “Yield spread premium” means [a cash rebate] compensation paid by a lender directly or indirectly to a mortgage broker or mortgage originator for originating a mortgage or that is based on selling an interest rate to a borrower that is above the wholesale par rate that the borrower qualifies for.

6 Mortgage Bankers and Brokers; Application. Amend RSA 397-A:2, I to read as follows:

I. This chapter shall provide for the department’s regulation of persons that [engage in the business of offering, originating, making, funding, or brokering] offer, originate, make, fund, or broker a mortgage [loans] loan from the state of New Hampshire or a mortgage [loans] loan secured by real property located in the state of New Hampshire.

7 Mortgage Bankers and Brokers; License Required. RSA 397-A:3, I is repealed and reenacted to read as follows:

I. It shall be unlawful for any person who is not exempt under RSA 397-A:4, to act as a mortgage broker, mortgage banker, or mortgage originator in its, his, or her name or on behalf of another person without first obtaining and maintaining annually a license under this chapter. Each mortgage banker, broker, or originator shall register with and obtain and maintain a valid unique identifier issued by the Nationwide Mortgage Licensing System and Registry. Under this chapter, an originator’s license is only in effect when such originator is employed or retained by a licensed mortgage banker, broker, or a registered servicer or by a person exempt from this chapter that has registered or made a filing as an exempt entity on the Nationwide Mortgage Licensing System. A person licensed as mortgage banker may act as a mortgage broker without obtaining a separate license.

8 Mortgage Bankers and Brokers; License Required. RSA 397-A:3, II is repealed and reenacted to read as follows:

II. A person located outside of the United States and required to be licensed under this chapter shall maintain a location within the continental United States where records of all New Hampshire transactions are kept and from where all activity under this chapter shall be conducted.

9 New Paragraph; Mortgage Bankers and Brokers; Exemptions. Amend RSA 397-A:4 by inserting after paragraph V the following new paragraph:

VI. A person that is the owner of New Hampshire real property provided that:

(a) The owner and any affiliate of the owner collectively make 4 or fewer mortgage loans in a 12-month period on all property owned by the person or affiliate;

(b) The owner does not act as an originator;

(c) All origination activities are conducted by an originator duly licensed in this state;

(d) Only the licensed mortgage banker or broker that employs or retains the originator is directly or indirectly compensated by the owner; and

(e) The licensed mortgage banker or broker that employs and retains the originator may directly compensate the originator.

10 New Paragraph; Debt Adjustment Services. Amend RSA 399-D:3 by inserting after paragraph III the following new paragraph:

IV. Any person not exempt under RSA 399-D:4 that, in its own name or on behalf of another person, engages in a mortgage loan modification activity as a debt adjustment service in this state or with persons located in this state, shall be required to obtain a mortgage license from the banking department pursuant to RSA 397-A.

11 New Paragraphs; Debt Adjustment Services. Amend RSA 399-D:4 by inserting after paragraph VI the following new paragraphs:

VII. Any person engaged in effecting a mortgage loan modification if such person is duly licensed as a mortgage banker, mortgage broker, or mortgage originator under RSA 397-A or is registered as a mortgage servicer or is licensed as a mortgage originator under RSA 397-B and such person conducts no other activity that would require a license under this chapter.

VIII. A debt adjuster duly licensed pursuant to RSA 399-D that acts as a money transmitter for the sole purpose of providing a debt adjustment service to a consumer under terms of a contract issued pursuant to RSA 399-D and that has a surety bond on file with the commissioner under RSA 399-D in the amount of $100,000.

12 Effective Date. This act shall take effect 60 days after its passage.

Links

HB247 at GenCourtMobile

Action Dates

Date Body Type

Bill Text Revisions

HB247 Revision: 18303 Date: Jan. 24, 2011, midnight

Docket