CS/HB 935 - Mortgage Regulation Summary

• Adds definition of "business purpose loan" as a mortgage loan where borrower intends to use proceeds primarily for business rather than personal, family, or household purposes, with interpretation based on Consumer Financial Protection Bureau regulations at 12 C.F.R. § 1026.3(a).

• Defines "hold himself or herself out to the public as being in the mortgage lending business" to include advertising mortgage services, soliciting borrowers, maintaining commercial business establishments for mortgage activities, or using names or logos indicating licensed mortgage lending operations.

• Prohibits misrepresenting a residential mortgage loan as a business purpose loan, making this practice unlawful under the state's mortgage regulation statutes.

• Establishes penalties including third-degree felony for knowing violations, and first-degree felony when violations involve unlawful property or money exceeding $50,000 with five or more victims.

• Takes effect July 1, 2019.