This topic consolidates legislative summaries of new and revised state laws pertaining to licensing, originating, and servicing mortgage loans.
The state of New York has published amended provisions regarding discrimination based on citizenship or immigration status under Senate Bill 6328. These provisions are effective immediately.
New York Department of Financial Services' Superintendent announced they will designate the Average Prime Offer Rate for 5/1 ARMs as the replacement benchmark lending institutions use for calculating subprime thresholds for adjustable or variable rate loans with an initial rate that is fixed for a minimum of 3 years pursuant Section 6-m of the Banking Law. This is in response to Freddie Mac’s announcement that it would discontinue publication of its weekly Primary Mortgage Market Survey (PMMS) rate for 5/1 ARMs. This guidance is retroactive to November 17, 2022, which is the first day on which Freddie Mac ceased publication of the 5/1 ARM rate.
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The state of Michigan enacted provisions that prohibit the recording of deeds or other instruments relating to real property that contain certain restrictive covenants or conditions, effective immediately.
The Commissioner of the Vermont Department of Financial Regulation has extended the suspension of the disclosure requirements of Regulation B-98-2 for High Rate Mortgage Loans from January 1, 2023 through June 30, 2023; however, this suspension does not eliminate requirements for disclosures for High Point Mortgage Loans.
Governor Hochul signed A3081 into law on November 22, 2022, immediately prohibiting the registration of mortgages in default prior to the filing of a notice of pendency.
A bank or credit union subject to the examination authority of the commissioner shall report annually, on or before March 1, to the commissioner on the amount of revenue earned from overdraft fees and non-sufficient funds fees collected in the most recently completed calendar year and the percentage of that revenue as a proportion of the net income of the bank or credit union.
"By partnering with ACES, we have witnessed an overall improvement in the quality of our reviews."
-Hilda Melendez, Quality Control Systems Director at Lennar Mortgage
Pennsylvania Senate Bill 696 was approved by the Governor on November 3, 2022, modifying the Breach of Personal Information Notification Act definitions and other provisions relating to information security breach requirements
The Vermont Declared Rate used for determining high cost home loan status for 2023 has been set at 4%.
California Senate Bill 1311 (the Military and Veteran Consumer Protection Act of 2022) was signed into law on September 27, 2022, by Governor Gavin Newsom and makes changes to the Military Lending Act's exceptions for loans to purchase personal property including vehicles among other things.
Kansas has adopted permanent legislation for notaries including remote online notary provisions effective October 28, 2022.
Automated compliance tests to ensure compliance on more loans in less time
The state of Delaware has revised its notary laws effective August 1, 2023, including provisions related to general notary requirements, fees, and remote notarial acts.
The governor of California recently signed AB1904, a bill that, among other things, prohibits a covered person or a service provider from engaging in unlawful, unfair, deceptive, or abusive acts or practices regarding consumer financial products or services and allows the California Department of Financial Protection and Innovation to bring a civil action against a violator.
Buckley InfoBytes Blog
The governor of California signed a bill that establishes a requirement for a creditor to refund the unearned portion of a guaranteed asset protection waiver (GAP waiver) automatically when the loan is terminated early.
The California Commissioner of Financial Protection and Innovation is proposing to adopt regulations implementing the Student Loan Servicing Act (Act), Financial Code section 28100, et seq., and the Student Loans: Borrower Rights Law, Civil Code section 1788.100, et seq.
