LEGISLATIVE UPDATE
The Nebraska Association of Mortgage Brokers’ (NEAMB) Legislative Committee has been working diligently in 2008 and we are proud of our accomplishments thus far. We have familiarized ourselves with the State of Nebraska’s legislative process and introduced NEAMB to key individuals within the State of Nebraska’s Department of Banking and Finance as well as its Legislature. We created a draft of a bill to require continuing education, background checks and licensing for mortgage loan originators in Nebraska and earned support from regulatory agencies, state senators and others. We hoped to introduce our bill at the next legislative session (early in 2009). However, Federal legislation (H.R. 3221) was passed into law in July 2008. The provisions regarding mortgage loan originators within H.R. 3221 mirrors the legislation we were planning to have introduced at the state level. These provisions for a “State-Licensed Loan Originator” include:
Background Checks - including fingerprints for submission to the FBI AND personal history & experience to include a credit report and information related to any administrative, civil or criminal findings by any governmental jurisdiction.
No License Revocation – never have had a license revoked in any governmental jurisdiction.
No Felonies – never been convicted of, pled guilty or nolo contendere to a felony in a domestic, foreign, or military court in the 7 years preceding the application OR any time preceding such date of application if such felony involved an act of fraud, dishonesty, breach of trust, or money laundering.
Demonstrate Financial Responsibility and Character – general fitness to command the confidence of the community to warrant a determination that the originator will operate honestly, fairly and efficiently within the purposes of this title.
Pre-Licensing Education – 20 hours to include 3 hours of Federal law and regulation, 3 hours of ethics, 2 hours related to lending standards for nontraditional mortgage products.
Pass Written Test – to measure applicant’s knowledge and comprehension in ethics, Federal and State law and regulation pertaining to mortgage origination, instruction on fraud, consumer protection, nontraditional mortgages and fair lending issues. Applicant must score 75% or above to pass.
Meet Net Worth or Surety Bond Requirement
Continuing Education – 8 hours per year to include 3 hours of Federal law and regulation, 3 hours of ethics and 2 hours of nontraditional mortgage product lending standards. Other rules apply.
Each state will have 1 year (2 years if the State legislature meets biennially) to pass a bill or regulation to implement the licensing and registration system. In the next several months, the focus of NEAMB’s Legislative Committee will turn toward assisting the State of Nebraska Department of Banking & Finance and Legislators in formulating a workable plan to comply with H.R. 3221. The HUD Secretary will establish and maintain the system.
