Should US state nonbank mortgage servicers be subject to “safety and soundness” standards of the type imposed by federal law on insured depository institutions, even though the nonbanks do not solicit and hold customer funds in federally insured deposit accounts or pose a direct risk of a government bailout? Well, state mortgage banking regulators think

The COVID-19 national emergency has caused unprecedented economic disruption. The federal government was quick to enact relief measures for federal student loan borrowers who may be experiencing financial hardship as a result of the pandemic. Last week, nine states announced a coordinated effort to partner with private student loan servicers and offer relief for private

In a development that industry observers may have overlooked amid more pressing concerns caused by the COVID-19 pandemic, the Idaho legislature enacted a measure that will require mortgage servicers to be licensed by July 1, 2020, unless the date is extended. With last month’s enactment, Idaho joins the majority of states that license mortgage servicing and provides a useful reminder that, when things eventually return to some degree of normalcy, non-pandemic-related compliance obligations will remain. This blog post discusses Idaho’s new mortgage servicer licensing obligation and other pertinent provisions of the legislation.

The New Mortgage Servicer Licensing Obligation

Idaho House Bill 401 (“H401” or the “Bill”) amends the Idaho Residential Mortgage Practices Act (Idaho Code §§ 26-31-101 et seq.) (the “RMPA” or the “Act”) to include mortgage servicing among the activities that trigger licensing under the Act.
Continue Reading Regulatory Life Goes On—Idaho Legislature Remained in Session During COVID-19 Pandemic to License Mortgage Servicers

Nevada requires nonexempt persons making unsecured or other non-real estate secured commercial or business loans, or non-real estate-secured consumer loans, to obtain a license under the state’s Installment Loan and Finance Act (the “Nevada Act”), administered by the state’s Division of Financial Institutions (the “Division”). Shortly after enactment of the federal Coronavirus Aid, Relief, and

Each day, new jurisdictions issue orders for businesses to cease operations and for residents to stay at home. The orders typically exempt “essential businesses,” including certain businesses and workers in the financial sector. Those jurisdictions recognize that consumer financial services businesses provide essential access to deposits, credit, and payment systems. Often, though, the orders’ terminology

Two days after its original announcement, the NMLS Policy Committee has amended its previously announced 60-day temporary deadline extension for certain types of reporting submitted in NMLS. According to the current posting on the NMLS website, it appears that because the Federal Financial Institutions Examination Council announced there would be a 30-day extension for certain reports, the NMLS Policy Committee reduced its extension for filing financial statements and certain other reports from 60 days to 30 days. The revised reporting due date table has also been amended to reflect the new 30-day temporary deadline extension. We do not know the consideration(s) that went into this new decision.

Plus, the NMLS Policy Committee is now encouraging
Continue Reading NMLS Amends Extension to State Reporting Due Dates, as Coronavirus Still Plagues the Land

As concerns about the spread of the coronavirus escalate, some of our clients have raised branch office licensing questions about employees originating mortgage loans from their homes during a period of being quarantined in their home due to the coronavirus. All but a handful of states license branch offices, and most states require a licensed

It’s been 100 years since the time of jazz clubs, speakeasies and flappers. A time when new inventions such as radios, movies, telephones and automobiles introduced a new modern lifestyle. One hundred years later, technology has significantly evolved, and no doubt our jazz age ancestors would think the internet is the cat’s pajamas.

With that

For many years it was unclear whether mortgage debt was covered under the California Rosenthal Fair Debt Collection Practices Act (the “Rosenthal Act”), which is California’s corollary to the federal Fair Debt Collection Practices Act (“FDCPA”). That issue was resolved on October 7, 2019, when California Governor Gavin Newsom signed into law legislation that expressly includes “mortgage debt” within the Rosenthal Act’s definition of “consumer credit.” Senate Bill 187 (“SB 187”), which is effective January 1, 2020, amends the Rosenthal Act to expressly apply to debt collection activities involving residential mortgage loans.

SB 187 also amends the Rosenthal Act so that it now includes attorneys in the definition of “debt collector.”  Until the amended Rosenthal Act goes into effect, attorneys are excluded from that definition.
Continue Reading California Legislature Declares that Mortgage Debt Is Regulated under the State’s Debt Collection Law

Mayer Brown offers its Global M&A Podcast Series as an easy way to stay up-to-date on the latest M&A trends globally—legal issues and other related, timely topics. Available on iTunes, each episode draws on the perspective that our lawyers have gained from doing deals in various regions around the world.

In a recent episode, partners