SB 1110 Summary

• Expands mortgage licensing requirements to include loan processors and underwriters as separate license categories, with specific education and testing requirements effective October 1, 2011.

• Modifies surety bond requirements for mortgage lenders, correspondent lenders, and brokers with tiered penal sums ($50,000-$500,000) based on aggregate loan volumes, and extends bonding to debt negotiators sponsoring mortgage loan originators.

• Allows exempt persons (banks, credit unions, certain nonprofits) to register as exempt registrants to sponsor mortgage loan originators and loan processors/underwriters under the Nationwide Mortgage Licensing System.

• Removes ten-year lookback periods for criminal convictions in licensing determinations across multiple financial services (mortgage, sales finance, small loan, check cashing, money transmission, debt adjustment, and consumer collection agencies), allowing consideration of any prior felonies or certain misdemeanors.

• Establishes debt negotiation licensing requirements and requires individuals negotiating residential mortgage loans to be licensed as mortgage loan originators or exempt from such licensure.