SB 190 - This act modifies provisions regarding residential mortgage brokers.
The act defines "continuing education" and establishes standards to comply with the continuing education requirements. The definition of "exempt entity" is modified to include any authorized licensed insurance agent, broker, or producer in any state and any loan originator under exclusive contract with a licensee who has a net worth on file with the Director of the Division of Finance in the Department of Economic Development that exceeds $25 million who only offers loan products of affiliated lenders wholly owned by the same publicly traded company as the licensee. The act adds any mortgage banker to the definition of "exempt entity" for the purpose of mortgage broker licensure. Any person employed or contracted by a licensee who assists in brokerage activities is removed the definition of "exempt entity". The act defines "loan originator" and "residential loan originator license certification course".
The act exempts certain financial institutions from the loan originator licensing requirements. The act exempts from the licensing requirements those persons holding mortgage broker or loan originator licenses prior to the effective date of the act. The director must consider advice from the Residential Mortgage Board on the promulgation of any rule and on the decision to deny or revoke a license. The director will provide relevant documents to the board. All license applications shall include evidence of the satisfactory completion of the residential loan originator license certification course and examination. Loan originator licensees shall deliver their licenses to their current employer and notify the director. In the case where employment is terminated, the licensee will return his or her license to the director with a written explanation of the reasons for termination. All license renewal applications must include evidence of the completion of all continuing education requirements.