MBA State Relations Committee Update State Highlights
In This Section
Advocacy News and Information From the Latest Issue of the MBA State Relations Committee Update
Minnesota Enacts Legislation to Adopt MLO Uniform State Test; Test Now Adopted by all States
Minnesota Governor Mark Dayton paved the way for the state's adoption of the NMLS Uniform State Test (UST) for state-licensed mortgage loan originators (MLOs). The bill, which received the support of the Minnesota Mortgage Association and was unanimously passed by both chambers of the State Legislature, also adds one hour to the state's MLO continuing education requirements that must focus on state laws and regulations. MBA has worked with partner associations across the country to achieve nationwide adoption. Implementation will begin in the state on August 1st.
Tennessee Legislature Sends Remote Online Notarization Legislation to the Governor
The Tennessee General Assembly sent legislation to Governor Haslam for his signature that would enable remote online notarization (RON) in the state. Both the House and Senate unanimously passed companion bills (HB 1794/SB1758) that would allow Tennessee to join Indiana, Virginia, Montana, Texas and Nevada in permitting RON. This would be the second state in 2018 to enact RON legislation if signed by the Governor. The language of the bill closely follows the contours of the MBA-ALTA model bill, which can be found on the MBA Remote Online Notarization Resource Center.
Texas Secretary of State Proposes Remote Online Notarization Regulation
The Texas Secretary of State released proposed rules to direct the use of remote online notarizations (RON) within the state. The proposed rules require online notarizations to have minimum standards for credential analysis and identity proofing similar to the MBA-ALTA model bill and the standards proposed by the Mortgage Industry Standards Maintenance Organization (MISMO). These are also the first rules proposed by a state since the February 2018 release of model RON standards by the National Association of Secretaries of State. The deadline for industry comments is June 3, 2018. The proposed rules can be found here. MBA is working closely with counsel for the Texas MBA on this issue.
CSBS Discusses NMLS 2.0 Development at MBA's State and Local Workshop
During a panel discussion at the recent MBA State & Local Workshop, Tim Doyle, Sr. Vice President at the Conference of State Bank Supervisors (CSBS) gave an update on the next iteration of the National Multistate Licensing System (NMLS) and also invited industry to visit the NMLS 2.0 website and provide feedback on the proposed changes. Recently, MBA provided comments on CSBS' proposal to update the Mortgage Call Report (MCR), which is being developed in conjunction with NMLS 2.0. In the letter, MBA expressed support for CSBS' attempt to make the MCR the unified standard for data disclosure. However, MBA also flagged potential issues created by the change in structure and format. The proposed changes to the MCR can be found on the NMLS Resource Center.
California Energy Commission Approves Nation's First Solar Power Requirement on New Homes Adding to Costs in an Already Tight Market
The California Energy Commission approved sweeping first-in-the-nation rules to require all new homes built in the state to have solar panels. The new requirements go into effect on January 1, 2020 for new single-family home permits in subdivisions of 10 or more homes, and new multi-family housing of three stories or fewer (i.e. low-rise multifamily properties). There are very few exceptions to the rule, including for example, for structures built in the shade or in the shadow of another building. The Commission's report indicated they expect the increase in upfront costs to average $9,365 per household using average system size, although other estimates are higher. The Commission acknowledged that this "could have an adverse impact on homebuyers by pushing homes out of their available borrowing range," but voted 5-0 nonetheless. MBA is concerned that this public policy will indeed have detrimental effect on the availability of affordable housing stock in what is already the nation's highest cost housing market.
New York Department of Financial Services Studying Online Lending; Requests Comments
The New York Department of Financial Services (NYDFS) has invited comment on the business practices, economic impact and operations of online lending in New York. Consistent with legislation (S.7294/A.8938) enacted earlier this year, comments will be considered for a public report prepared by the NYDFS and submitted to the state legislature by July 1, 2018. While the language of the request for comments and the commanding legislation fail to define "online lending" and whether it relates to mortgage lending, it does note the inclusion in the report of, among other topics, business and lending practices online lenders, interest rates and costs charged, and consumer complaints and investigations about the industry. The report will also include an analysis of the primary differences between online lending products and services and those of traditional lending institutions. Comments are due by May 24th and can be submitted to OnlineLending@dfs.ny.gov.