MS SB2897

Reenacts and revises the Mississippi S.A.F.E. Mortgage Act (Sections 81-18-1 through 81-18-63) governing mortgage brokers and lenders licensing and regulation.

Extends the repeal date of the act from July 1, 2012 to July 1, 2016 and adds mortgage loan servicing requirements including escrow account administration, borrower inquiry responses, hazard insurance placement restrictions, and pre-foreclosure notice requirements.

Clarifies licensing application requirements to include executive officers, independent credit reports, and background checks for all applicants; establishes that expungements of criminal convictions shall not disqualify applicants.

Revises surety bond requirements to be determined by rule based on loan activity (not to exceed $25,000 for brokers and $150,000 for lenders) and clarifies that employer bonds may satisfy individual loan originator requirements.

Adds "housing finance agency" definition, removes clarifying language on owner financing applicability, updates signage requirements to include Nationwide Mortgage Licensing System unique identifiers, and clarifies that loan closing dates must be included in transaction journals.