Residential Mortgage Companies and Originators

 

2011 Legislation  

The bill provides an exemption from the licensing requirements under the Louisiana S.A.F.E. Residential Mortgage Lending Act for persons who meet all of the following requirements:

a.  In any calendar year, originates five or fewer residential mortgage loans exclusively for a single federally chartered depository institution, and the loans are closed.

b.  Is contractually prohibited from soliciting, processing, negotiating, or placing a residential mortgage loan with a person other than the single federally chartered depository institution.

c.  Enrolls with OFI.

d.  Is not barred from licensure by the commissioner.

e.  Is sponsored by a life insurance company or affiliate and is a licensed mortgage loan broker or originator, and which sponsorship shall include all of the following:

             i. Maintains surety bond coverage of $1 million that covers all persons subject to the exemption.
            ii. Paying OFI an annual fee on behalf of the individual exempted.

In addition, the bill provides an exemption for individuals employed by nonprofit corporations providing financial education and counseling to consumers, is exempt from federal taxation under Section 501(c) of the Internal Revenue Code, is approved by HUD and does not originate residential mortgage loans.

The bill also provides an exemption from licensing for mortgage servicer loss mitigation specialists if the commissioner determines that the specialist is compliant with the minimum standards.

For more information regarding this legislative act and how it may affect you/your employees, please contact Deputy Chief Examiner Darin Domingue at (225) 922-2596.

These are merely highlights of the bills for information purposes and are not official interpretations or opinions.  Please visit www.legis.louisiana.gov to review the entirety of the Acts