HB 1801 Summary

• Amends licensure qualifications for loan officers, mortgage bankers, brokers, and servicers to require fingerprints for submission to the FBI and other governmental agencies for state, national, and international criminal background checks.

• Modifies surety bond requirements by clarifying the bond amount is prescribed by commissioner rule or order, based on loan activity, with a minimum of $100,000, and must cover claims for at least 5 years after the licensee ceases providing mortgage services.

• Restructures bond liability provisions by removing the priority for consumer claims and replacing it with a requirement that bonds cover claims for a minimum of 5 years or longer as required by the commissioner.

• Expands mortgage servicer duties to require disclosure to borrowers when servicing rights are assigned, including notices required by the Real Estate Settlement Procedures Act and notice that the servicer is licensed in Arkansas.

• Requires the unique identifier of persons soliciting or originating mortgage loans to be clearly displayed on all loan application forms, solicitations, advertisements, business cards, websites, and other documents as established by commissioner rule or order.