House Bill 401 Summary

• Repeals Chapter 28, Title 26, Idaho Code relating to mortgage companies and consolidates mortgage regulation under Chapter 31.

• Removes references to "qualified person in charge" requirements and replaces with "control person" definition that includes managers and individuals with 10% or more voting security.

• Adds new provisions requiring mortgage lenders to disclose reserve account terms, provide annual account statements to borrowers, and notify borrowers within 15 days of loan transfer.

• Creates temporary authority for registered loan originators to work for licensed mortgage brokers or lenders for up to 120 days while their license application is pending, subject to the same requirements as licensed originators.

• Establishes reserve account limits at 120% of annual amounts needed for taxes, insurance, and other charges, with director authority to order reductions if excessive.