S.B. 1519 - Mortgage Loan Originators

• Requires all mortgage loan originators to be sponsored by either a licensed mortgage loan originator company or an exempt sponsoring mortgage loan originator company registered with the Nationwide Mortgage Licensing System.

• Establishes new procedures for denied applications including automatic secondary review of applications that fail initial criteria, and allows applicants 15 days to request administrative hearings.

• Defines abandoned applications as those where applicants fail to demonstrate continued licensing efforts for 6 consecutive months, with no refund of filing fees.

• Creates specific duties and qualifications for qualified individuals and branch managers, including supervision of trust accounts, loan documents, compliance monitoring, and maintaining records for 7 years.

• Expands prohibited practices to include filling in loan application blanks without borrower documentation, falsifying loan terms, originating loans based primarily on collateral value rather than repayment ability, and encouraging borrowers to misrepresent income or assets.

• Establishes registration fees for exempt sponsoring mortgage loan originator companies ($200 initial, $150 annual renewal) and specifies fees for mortgage loan originators and companies.