HB 104 Summary

• Adds bona fide nonprofit organizations to the list of entities exempt from mortgage lender and mortgage broker licensing requirements.

• Exempts employees of bona fide nonprofit organizations from mortgage loan originator licensing when acting on behalf of the organization for residential mortgage loans with borrower-favorable terms consistent with public or charitable purposes.

• Establishes criteria for nonprofit qualification including tax-exempt 501(c)(3) status, promotion of affordable housing or homeownership education, offering mortgages unavailable from other lenders, and providing below-market interest rates.

• Requires the Department of Commerce, Community, and Economic Development to determine nonprofit eligibility, establish regulatory procedures for qualification and ongoing compliance, and oversee suspension or revocation of status.

• Authorizes seller financing exemptions from licensing for property owners who finance five or fewer sales per 12-month period with fixed-rate loans and requires sellers to keep purchaser financial information confidential except when authorized in writing or required by law.