Despite changes in leadership at numerous federal agencies, Washington D.C. continues to focus on lending to servicemembers. In December, Congress extended the time period for protections against foreclosure under the Servicemembers Civil Relief Act. Otherwise, those protections would have expired at the end of 2017.

In addition, the Department of Defense recently amended its Military Lending Act interpretive rule. Among other topics, the amendments address loans to purchase a motor vehicle or other property, and the extent to which the Act’s requirements exempt loans that finance amounts in addition to the purchase price.

Read more in Mayer Brown’s Legal Update.

Pennsylvania became the latest state to impose a licensing obligation on mortgage loan servicers. It appears that the licensing obligation will apply not only to entities that conduct the typical mortgage loan servicing activities for others, but also to certain mortgage lenders servicing their own portfolio. In addition, the licensing obligation may apply to persons merely holding mortgage servicing rights. Pennsylvania regulators intend to issue guidance regarding the scope of the state’s new licensing obligation while the effective date is pending.

Read more in Mayer Brown’s Legal Update.

On December 22, 2017, Ohio Governor Kasich signed into law Ohio House Bill 199, which will make significant changes in how the state will license and regulate mortgage lenders and brokers. The bill takes effect 91 days after filing with the Ohio Secretary of State (which filing had not been made as of January 4, 2018).

The bill amends the Ohio Mortgage Brokers Act (the “OMBA”) to bring the registration of mortgage lenders and brokers, and the licensing of mortgage loan originators, together under a single statute. The amended statute will be called the Ohio Residential Mortgage Lending Act (“ORMLA”). Continue Reading Ohio Consolidates its Mortgage Finance Licensing Laws into a new Residential Mortgage Lending Act

On November 7, Texas voters will have the opportunity to make some significant changes to the state’s homestead equity loan restrictions. As summarized below, Texas Proposition 2 will, if approved: (1) revise the strict fee limits for such loans; (2) add to the list of lenders that are authorized to make the loans; (3) eliminate the “once-a-home-equity-loan, always-a-home-equity-loan” rule; (4) allow borrowers to sign an affidavit of compliance regarding certain new refinancings of such loans; and (5) allow advances on lines of credit up to 80% loan-to-value (LTV) ratio.

The Texas Constitution imposes strict limits on the types of loans that validly may be secured by Texas homestead property. For home equity loans (other than purchase-money loans or rate/term refinances), the Texas Constitution imposes a long list of limitations and requirements, the violation of which invalidates the lien and can result in the forfeiture of principal and interest. A lender or holder has an opportunity to cure at least some of those violations. Since the limitations are part of the state constitution, relief can come only through legislative resolutions on which the public must then have the opportunity to vote. Continue Reading Texas Voters Consider Big Changes to Home Equity Loan Restrictions

UPDATE June 8:
The House of Representative approved the Financial CHOICE Act, with a vote largely on party lines of 233 to 186.  While the Senate Banking Committee is and has been considering financial reform proposals, it is unlikely that the Financial CHOICE Act as passed by the House will progress in the Senate.

UPDATE June 7:
As expected, House Rules Committee approved a rule on June 6 allowing 90 minutes of general debate that will permit the Republicans to offer 6 amends. Floor consideration expected to start this afternoon or first thing tomorrow morning.

The House Rules Committee has scheduled a meeting on the CHOICE Act for 5:00 PM Tuesday, June 6, to consider the amendments that have been submitted as well as a rule for floor consideration. It is expected that the Committee will issue a rule to bring the bill to the House floor on Wednesday, and that rule is likely to provide for debate and floor consideration of amendments.

There is some speculation that Democratic members may withdraw their amendments in a show of opposition to the bill, similar to their decision last Congress not to participate in the Committee mark-up.  We understand that the Majority Whip, Rep. McCarthy (R-CA), has placed the bill on the calendar for Wednesday, June 7th, subject to the Rules Committee completing its work. Depending on the final number of amendments to be considered (if any), and the time provided for debate, it is possible that the bill could pass as early as Wednesday evening.

*John Mirvish is not admitted to practice law in the District of Columbia.