HB 12 Summary: Mortgage Lending And Loan Originators

• Allows depository institutions to sponsor mortgage loan originators under exclusive written contracts without becoming licensed mortgage lenders, subject to registration with the Department of Commerce, Community, and Economic Development.

• Creates a new registration process for depository institutions that includes completing a registration form, paying registration fees, and renewing annually; requires identification of sponsored originators and mortgage lending locations.

• Grants the department authority to deny, suspend, or revoke depository institution registrations for failure to meet requirements, inadequate supervision of sponsored originators, or material misstatements on applications.

• Extends existing mortgage lending regulations to registered depository institutions, including bonding requirements, annual reporting, record-keeping for 36 months, and compliance with accounting and documentation standards.

• Establishes that registration does not affect the exemption status of depository institutions under existing law and takes effect January 1, 2017, with regulatory adoption authority effective immediately.