HB 2082 Summary

• Adds new prohibited acts and duties for mortgage brokers regarding residential mortgage loans, including verification of borrower's reasonable ability to pay based on income, financial resources, and fully indexed rates for variable-rate loans.

• Prohibits mortgage brokers from engaging in churning (knowingly arranging refinanced loans that do not provide reasonable net benefit to borrower) or making loans with intent to acquire property through foreclosure.

• Restricts mortgage brokers from originating lower investment grade loans when borrower qualifies for higher grade loans, unless borrower is informed and consents in writing.

• Prohibits charging fees for products or services not provided, misrepresenting third-party charges, and compensating or coercing appraisers to influence property valuations.

• Requires mortgage brokers to reasonably supervise loan originators employed by the broker and clarifies that borrower statements alone are insufficient to verify income or financial resources.