AR SB871

Adds operating subsidiaries of state chartered banks regulated by the State Bank Department to the definition of "exempt person" under the Fair Mortgage Lending Act

Clarifies that attorneys licensed in Arkansas are exempt when rendering legal services to clients, provided the conduct subject to the act is ancillary to legal services offered

Expands the definition of "loan officer" to include persons who provide or offer to provide modification of a mortgage loan

Amends the definition of "mortgage servicer" to include persons who have the right to receive payments from borrowers, not just those currently receiving payments

Adds three new prohibited activities for mortgage servicers: failing to timely pay from escrow accounts for insurance and taxes; placing hazard or flood insurance without prior written notice or when coverage already exists; and failing to refund unearned insurance premiums within 12 months when borrower provides reasonable proof of duplicate coverage