ND HB1068

Creates Chapter 13-13 of the North Dakota Century Code to establish licensing and regulation of residential mortgage loan servicers by the Department of Financial Institutions.

Requires servicers, subservicers, and mortgage servicing rights investors to obtain a license with a $400 application fee and $400 license fee; renewal fees are $500 or $2.40 per $100,000 of North Dakota mortgage loans serviced, whichever is greater, up to $100,000 maximum.

Exempts banks, credit unions, savings and loan associations, state or federal housing finance agencies, farm credit institutions, and not-for-profit mortgage servicers from licensing requirements.

Establishes capital and liquidity requirements for "large servicers" (2,000+ one-to-four unit residential mortgage loans) and requires annual external audits, corporate governance structures, board oversight, and risk management programs.

Violations are Class C felonies; Commissioner may impose civil money penalties up to $100,000 per occurrence plus $1,000 per day of violation continuation; appropriates $225,000 and 1.0 full-time equivalent position for biennium July 1, 2023 through June 30, 2025.