Revision: Jan. 25, 2011, midnight
HB 408 – AS INTRODUCED
2011 SESSION
09/05
HOUSE BILL 408
AN ACT relative to residential mortgage loan transactions.
SPONSORS: Rep. Sapienza, Rock 8; Rep. Sedensky, Rock 8; Rep. Hess, Merr 9
COMMITTEE: Commerce and Consumer Affairs
This bill clarifies an exemption from the licensing requirement for mortgage brokers or bankers for attorneys and their employees who provide legal services in connection with residential mortgage loans. The bill also modifies the definition of “mortgage loan originator.”
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
11-0653
09/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eleven
AN ACT relative to residential mortgage loan transactions.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Exemptions From Licensing Requirements. Amend RSA 397-A:4, V to read as follows:
V. A licensed attorney engaged in the practice of law and those acting under the direction of such attorney who [negotiates] negotiate the terms of a residential mortgage loan on behalf of a client [as an ancillary matter to the attorney’s representation of the client], or who provide other legal services to the client in connection with the loan modification, provided that the attorney is not compensated, directly or indirectly, by a lender, a mortgage broker, mortgage servicer, or other mortgage loan originator or by any agent of such lender, mortgage broker, mortgage servicer, or other mortgage loan originator.
2 Definitions; Originator. Amend the introductory paragraph of RSA 397-A:1, XVII(a) to read as follows:
XVII.(a) “Originator” or “mortgage loan originator” or “mortgage originator” or “loan originator” means an individual who for direct or indirect compensation or gain or in the expectation of direct or indirect compensation or gain from a mortgage broker, mortgage servicer, lender, or financial institution, (i) takes a mortgage application [or] and (ii) offers, negotiates, solicits, arranges, or finds a mortgage loan or who assists a consumer in obtaining or applying to obtain a mortgage loan by, among other things, advising on loan terms (including rates, fees, and other costs), preparing loan packages, or collecting information on behalf of the consumer with regard to a mortgage loan or who offers or negotiates terms of a residential mortgage loan. No individual may act as an originator for more than one mortgage broker, mortgage servicer, or mortgage banker. A sole proprietor licensed as a mortgage broker, mortgage servicer, or mortgage banker shall also obtain a license as a mortgage originator prior to engaging in the activities of a mortgage originator. Mortgage loan originator does not include:
3 Effective Date. This act shall take effect July 1, 2011.