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MRG Document Technologies: August 2010 Compliance Alerts

Sep 17, 2010

MRG Document Technologies (MRG), a provider of mortgage document preparation software and compliance technology to banks, credit unions and other lenders nationwide, has released 13 compliance alerts in August on legislative and regulatory changes occurring across the United States. Below is the list of alerts with links to the full descriptions. ►Maryland and New Hampshire Legislative Update (August 31): The Maryland legislature amended the Maryland Reverse Mortgage Homeowners Protection Act and enacted the Credit Card Blacklist Act. The New Hampshire legislature enacted legislation giving condominium homeowners associations’ liens priority and required filing for owners of rental property. ►Maryland, Massachusetts and New York Legislative and Florida Regulatory Update (August 27): The Florida Office of Financial Regulation issued a letter addressing licensing. Maryland enacted legislation governing credit services businesses and mortgage brokers. Massachusetts’ legislation relates to discharge of mortgages. New York’s notice of foreclosure to tenants has been amended. ►Registration of Mortgage Loan Originators (August 26): The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of Thrift Supervision, the Farm Credit Administration and the National Credit Union Administration adopted final rules which are effective October 1, 2010 to implement the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act). ►New York Regulatory Update (August 23): The Superintendent of the New York State Banking Department recently adopted Emergency Regulations, effective Oct. 1, 2010, addressing the servicing of mortgage loans. ►New Jersey Regulatory Update (August 20): The New Jersey Department of Banking and Insurance recently issued a bulletin to notify all entities and individuals involved in residential mortgage lending activity regulated under the New Jersey Licensed Lenders Act and the New Jersey Residential Mortgage Lending Act, of how they may comply with New Jersey’s disclosure requirements without altering the HUD forms that have been revised to conform to the new Real Estate Settlement Procedures Act (RESPA) regulations. ►Illinois and Missouri Legislative Update (August 20): The Illinois legislature recently enacted the Save Our Neighborhoods Act of 2010, which amends the Illinois Housing Development Act to establish the Foreclosure Prevention Program and the Abandoned Residential Property Municipal Relief Program. A new section was added to the Missouri statutes to address mechanics’ liens against residential real property where the lien is for repair, remodeling or addition to residential property that is not owner-occupied. ►Texas Home Equity Case Law Update (August 19): The United States Fifth Circuit Court of Appeals recently affirmed the decision of the United States District Court for the Western District of Texas, holding that the borrower-plaintiffs failed to demonstrate that their home equity loan violated the provisions of Article XVI, § 50(a)(6) of the Texas Constitution that (1) provide for a mandatory waiting period before closing a loan, (2) requires “substantially equal” payments, and (3) prohibits payment of fees in excess of the 3 percent cap. A recent bankruptcy case addressed constitutional provisions related to 80 percent loan-to-value ratio and voluntary repayment of other loans to the home equity lender. ►Alaska, Delaware, Florida and Tennessee Legislative Update (August 17): The Alaska and Tennessee legislatures recently amended their foreclosure laws. The Delaware legislature recently added new definitions to its laws addressing insurance requirements for mortgages to distinguish between commercial and residential loans. The July 7, 2009 and Dec. 17, 2009 Memorandums discussed provisions of Florida Senate Bill 2226, which were effective July 1, 2009 and Jan. 1, 2010 respectively. This Memorandum addresses provisions of the Bill, which are effective September 1, 2010. ►Massachusetts Legislative Update (August 16): SENATE BILL 2407. On Sat., Aug. 7, the Massachusetts Governor signed Senate Bill 2407 into law. The bill had an Emergency Preamble so most of the provisions of the bill became effective on the Governor’s signature. ►North Carolina Legislative Update (August 12): The North Carolina legislature recently enacted legislation amending the North Carolina SAFE Mortgage Licensing Act and the Predatory Lending Law. The Homeowner and Homebuyer Protection Act was also recently enacted. ►Nevada Regulatory Update (August 10): The Nevada Commissioner of Mortgage Lending recently amended its Mortgage Bankers Rules and Mortgage Brokers and Mortgage Agents Rules to comply with the SAFE Act. The rules were effective July 22, 2010. ►New Jersey and New York Regulatory Update (August 10): The New Jersey Department of Banking and Insurance recently issued a bulletin addressing Applications for Licensure as Residential Mortgage Lenders or Brokers and as Mortgage Loan Originators under the Residential Mortgage Lending Act and an order extending conditional authority for licensees under the Licensed Lenders Act after July 31, 2010. The New York Banking Department recently extended prior Emergency Regulations, which implemented New York’s laws on mortgage loan originator licensing and financial responsibility requirements for both registered and exempt mortgage loan servicers until Sept. 5, 2010. ►Indiana and Montana Regulatory Update (August 9): Our Aug. 28, 2009, Dec. 10, 2009, and March 22, 2010 Memorandums discussed the Indiana Department of Financial Institutions’ (DFI) adoption of Emergency Rules that added an article to the Indiana Administrative Code, the Mortgage Lenders and Originators Regulation, to implement the SAFE Act. The DFI recently adopted Emergency Rules, amending the prior three Emergency Rules. The Montana Division of Banking and Financial Institutions recently amended the rules under the Montana Mortgage Broker, Mortgage Lender, and Mortgage Loan Originator Licensing Act to comply with the SAFE Act. For more information, visit  
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