SB 188 Summary

• Introduces "transitional loan officer" and "transitional loan officer license" designations for individuals employed by mortgage brokers or bankers, limited to 120 days and not renewable, to provide temporary licensing flexibility.

• Increases the control threshold from 10% to 25% of voting securities for determining whether a person controls a company under the Fair Mortgage Lending Act.

• Expands exemptions for manufactured or modular home retailers by allowing them to perform loan officer activities without full licensing if they limit compensation to cash transaction rates, disclose mortgage banker affiliations, provide referral information for unaffiliated creditors, and do not directly negotiate loan terms.

• References § 23-39-508 instead of § 23-39-505 for managing principal qualifications and repeals certain control person certification and loan officer conviction requirements.

• Adds transitional loan officers throughout the act to all licensing, supervision, employment termination notification, disciplinary, and background investigation provisions applicable to loan officers and mortgage industry participants.