Tom Fleming’s report from the

MBA’s State Legislative and Regulatory Committee Meeting

Tom attended the June 26 webinar and here are his 3 observations:

1. Thank the Good Lord that we do not do business in New York or California (at least most of you!) The regulations that those two states try to get passed and signed is absolutely mind-boggling, would cripple the mortgage industry, and require significant expenditures for lobbying efforts. Their respective MBAs have to put in a considerable amount of time defending their members from extinction.

2. NMLS has created a new designation for firm licensees which caught the MBA a bit off-guard. If you are an IMB and service loans that you have originated and closed for a brief period prior to delivery to the lender (say a month or two), you must update your information in NMLS. One state that learned about that and tracked its licensees who reported as instructed, summarily informed them that they would now have to apply for a separate license as a servicer and meet state-mandated servicing requirements.

3. NMLS is proposing to have licensed LOs separated into three distinct categories:

– Always in a licensed office

– Hybrid – occasionally in a licensed office

– Never in a licensed office

The Council of State Bank Supervisors is having a Town Hall on July 17th to discuss those changes, but registration is already full. MBA wanted to ensure its members that they were going to be attending to represent their interests.

4. Rhode Island was mentioned on MBA’s call with reference to the Conveyance Tax issue. William Kooper mentioned the speed of the response to the MAA Call for Action and the combined work of RIMBA and RIAR to Table the Bill which eventually went to the Governor’s desk, and the decision that he made not to sign it but let it become law.